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Msg  205850 of 207254  at  3/14/2019 9:58:48 PM  by

liambert

The following message was updated on 3/15/2019 4:42:01 AM.

AGI Island gold Math

  
Some interesting Alamos Gold Math at their Island gold mine (formerly Richmont) and why it is a monster in the making....
 
When AGI bought the underground mine there were 1.7 M in reserves and resources. They keep hitting more and more gold at higher  and higher grades at depth. Now 14 months later there are 2.8 M ounces. Reserve grade has increased steadily from about 9 gms/ton to over 10 gms/tn. The above is all very exciting and known information, but it is masking something very interesting that just started happening in the last few months.
 
Most of the recent drilling is adding to resources not reserves, as reserves are higher up in the mid-mine. These new results are reporting monster holes like 150 gms/tn over 5 Meters for months now (that hole isn't even in reserves/resources yet) and this has started to significantly increase their resource base from 900K ounces to 1.6 M ounces. Resource Grade has increased from 9.55 to 11.71 due to the much higher grades at lower levels. 
 
So other than the obvious fact that Island gold is transforming into an amazing 20 year ATM machine for Alamos, what is interesting in these numbers?. It is just this, the resources increased from 900K to 1.6M or 73% and resource grade increased 23%, yet tons of resource material only increased 41%. So now getting to the million dollar question, what is the calculated grade of the 700K newly added resource ounces from 2018 to make all this math work ?  The answer is 17 gm/tn or 60% over current reserve grade. 
 
Pretium's valley of the kings is only 16 gm/ton and that is a grade control nightmare. Alamos is 700K ounces into a new section of the mine with a step function increase in grades to 17 gm/tn and reports of even higher grades not added in yet.  
 
Richmont struggled in the early days at 5-6 gms/tn at the very top of the mine, then they found a 2 imillion ounce 9-11 gm/tn tasty caramel center halving their costs and sold out to Alamos. Now, Alamos is down to the next tier of depth and finding 17 gm/s ton on 9 out 10 drill holes. However, it takes a little math to realize it cause AGI isn't mentioning it directly. Red Lake 2 anybody ? 
 
 
 
 
 
 
 
 
 


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Msg # Subject Author Recs Date Posted
205873 Re: AGI Island gold Math jmat 0 3/15/2019 1:06:03 PM


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