Tuesday, May 31, 2016

Sandra - I sit and wonder why, oh?

Today there was another press release from Orex from Sandra Escobar. the results were disappointing, they clearly show that the silver mineralisation is NOT a disseminated blanket of silver but a disseminated halo around veins.
There is a silver lining, drill-hole 37 and 38 may have found a second, parallel zone.

For me, the results from the step out drilling was disappointing, with silver grades dropping the further we get from the core of the system.

Cross section (looking west) through the Main Zone
However, it isn't all bad news, Orex also released the assays from drill-hole 37 and 38. They were drilled 350m to the away from the main zone exploring an area where there appear to have been some historic exploration (google earth image shows some surface trenching and/or rock dumps.

Yellow dashed line = my guess extents of the Main Zone

 Both holes hit decent grades, but when we push through the promotion, we see exactly the same as when we have been seeing in the main zone. A narrow, high grade core with a moderately wide zone of lower grade mineralisation.

Again we can see that we have in both holes have a narrow (2-4m wide) zone of high silver grades that are surrounded by lower grade zone. We have seen this consistently in virtually every drill-hole on the property, but originally I had through that the silver zone would be intersected relatively deeply in these holes (around 70m depth), but they hit silver immediately. this is great news.

So how do holes 37 and 38 fit in to the big picture at Sandra? This is what I think is happening:

We are looking WNW here. Grey planes are proposed faults

I don’t think they have drilled the continuation of the main zone, but maybe they have discovered a second, parallel zone veining and silver mineralisation. If this zone is drilled to the SE, could it link up with the disseminated mineralisation with the main zone and form something bigger?

However, I would like to see a couple of things:
  1. Additional drilling around holes 01 and 02 as the high grade mineralisation is relatively unconstrained
  2. A few deeper drill-holes exploring the high grade mineralisation to depth. Drill-hole 18b hints that there could be some depth potential.

The market has responded to the new news, and it will be interesting to see what the upcoming resource statement says. I’m looking forward to it.

Again, updated leapfrog views can be found here (link)

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