Loading ...Irving Resources: The hits just keep coming…
Results include 12.59 gpt Au and 91.36 gpt Ag (13.81 gpt Au eq) over 2.01 m within 2.90 gpt Au and 29.5 gpt Ag (3.29 gpt Au eq) over 14.50 m in hole 20OMI-002. Hole 20OMI-003 yield one vein intercept of 8.15 gpt Au and 147.29 gpt Ag (10.11 gpt Au eq) over 1.76 m within 3.55 gpt Au and 69.24 gpt Ag (4.47 gpt Au eq) over 14.24 m and a second of 21.65 gpt Au and 538.75 gpt Ag (28.83 gpt Au eq) over 1.72 m including 56.10 gpt Au and 1,435.00 gpt Ag (75.23 gpt Au eq) over 0.60 m
So odd, and then odd again.
Yesterday and the day before the chart whispered these results. It was the sort of chart one would be scared to short. Narrow Bollinger Bands following what at least might liberally be considered a cup. Prices above extremely short term moving averages, which were steady or moving upwards. It looked ready for good news within about 2-4 trading days, and in fact Akiko Levinson or QH had said results were due soon. It did not go down in price much during the precious metals price raid. I so very much wished I had more cash than the trivial amount of stock I added yesterday morning. Odd that few noticed.
Odder still that it still seems relatively unnoticed after release of the results. Or perhaps I am missing something. I do not know Japanese politics etc. The more I learn of drill results in general the more incompetent I realize I am at interpreting them. Maybe they only seem good.???
Sorry for the delayed response, Karl. I had all of this written out and when I tried to post it it would not load due to my extremely poor internet connection. Happens all the time 🙁
Ok, drill results ain’t that hard to interpret. Many gold mines are able to make good profits with gold content per ton of 5 grams, even 2 or 3 grams if it is open pit. (Open pit much lower cost means of mining.)
First, I use a tool that converts grams to oz (my peabrain won’t retain that info so I always have to look it up.) So let’s look at the Irving results, say, 12 grams per ton. That is .42 oz. So figure 15 grams = 1/2 oz as a rule of thumb. Of course, 30 grams = 1 oz. A bonanza hit!!
Then just multiply the price of gold by the gold content. With Irving .42 X $1950 = $819 So that ore is worth $819 per ton.
When they start mining, if there AISC (all in sustaining costs) come in at say, $900 an oz, they will make $1,050 profit. Entirely possible, more likely probable. They expect to have VERY low cost per oz to mine, think in terms of $200 an oz to mine.
And that, in addition to the partners involved, is why Irving is so dang attractive!!
Now, the market delivered a delayed reaction and the stock did go up a nice pop. But also factor in that a) we are in a corrective/pullback/consolidation phase; b) there are many miners reporting very good news; and c) expectations for Irving are incredibly high. Personally, I’m thrilled with these numbers, and if I had the cash I’d add more to my holdings. Others may have expected Irving to hit multiple oz of gold per ton. In which case they would not find these results invigorating. But they are, oh, my, they are.
Hope that helps!!
BTW, I’ve run the math multiple times on Novo Resources in Australia (yet another Quinton special) which is going to start mining early next year – and they will be profitable coming out of the gate due to the nature of the deposit. Very cheap to mine gravel for nuggets, which is what they have. Their cost per oz should be in the $70 – $100 range. Now think a bit about those profits!!!