RECAP: High grade/Bulk Mining zones newly discovered this year via Vulcan

Companies like San Gold receives ridiculous market cap values for showing high grade exploration zones. Meanwhile, the market gives literally ZERO value (not even a fraction of a penny) for our high grade zones.

We know about the Bedard Dyke (numerous high grade zones going potentially down to 1000 ft, from the surface) and the North Wall Dyke. Both will be mined via long hole stoping methods (which favours block mining) during the early years of mining after start up.

Below are the high grade / bulk mining zones discovered this year alone (via Vulcan) - it doesn't include the potential 2M bulk mining ounces in the plugs. There may be an opportunity to drill some zones identified in the April 6'09 NR during this current $4M underground drilling program at Lamaque. We may have to wait until we dewater below 1,200 ft to drill most of the other zones identified on this post.

1) April 6’09 NR – discovery of 3 completely separate new zones with bulk mining potential, located at points between the surface and 2,000 feet down. ‘Of more significance, is that some of these holes are step outs of over 300 feet from the main mine areas. There is a high probability that the ore extends from the main mine workings to these newly modeled intersections.’

Zone 1) – drill hole#1243 – 4.6 meters true thickness @ 30.2 g/t gold

- drill hole #369 – 10.6 meters true thickness @ 22.0 g/t gold

- drill hole #10875 – 1.7 meters true thickness @ 37.3 g/t gold


Zone 2) – drill hole #1676 - 3.0 meters true thickness @ 29.1 g/t gold


Zone 3) – drill hole#9251 – 4.2 meters true thickness @ 23.5 g/t gold

– drill hole#9477 – 7.2 meters true thickness @ 8.5 g/t gold


2) June 23’09 NR – located between 2,000 and 2,600 feet below the surface (231,333 ounces of M&I and 12,938 Inferred ounces added)

*drill hole #5729 – 15.6 meters true length @ 27.3 g/t gold – “a diamond drill hole within a dyke structure containing 51 true vertical feet grading 27.3 grams per tonne including 3.5 feet of 363.4 grams per tonne”

*drill hole #6414 – 9.0 meters true length @ 7.8 g/t gold

*drill hole #9391 – 7.5 meters true length @ 20.2 g/t gold

*drill hole #12257 – 6.3 meters true length @ 9.5 g/t gold

*drill hole #15021 – 14.1 meters true length @ 7.0 g/t gold

*drill hole #15581 – 18.2 meters true length @ 6.9 g/t gold

*drill hole #16539 – 10.6 meters true length @ 9.2 g/t gold

*drill hole #16542 – 21.6 meters true length @ 4.2 g/t gold


3) February 24’09 NR - “These newly defined dyke and shear structures indicate the presence of large virgin ore zones, which may be bulk mined within 2,000 feet of surface.” – located at 1000 to 2000 ft below the surface

The NR included 428,357 new M&I ounces and 285,452 new Inferred ounces. It is not likely that all of the new resources on this particular NR have bulk mining potential, but some of the ounces should have strong potential. Here are some drill results from this NR that certainly looks to have bulk mining potential:

*drill hole #16178 – 21.9 meters true length @ 8.3 g/t gold

*drill hole #16179 – 14.1 meters true length @ 10.5 g/t gold

*drill hole #14580 – 27.6 meters true length @ 9.0 g/t gold

*drill hole #16028 – 12.3 meters true length @ 3.8 g/t gold

*drill hole #14027 – 9.1 meters true length @ 5.5 g/t gold