Thursday, September 7, 2017

Mexican Hat - dodgy numbers?

GMV's Mexican Hat project, we saw earlier how they like to add together their separate intercepts to make their gold zones look bigger.

This project has had a history of getting companies into problems with the BCSC.

The first was Capital Hill Gold (link):


And then it was the turn of Auracle Resources (link) :


We are told that the resource defined by Placer is:

So the gold is found is discrete zones?

Rock-chip sample data

Outcrop photos

Brown rocks - contain gold; grey = no gold

Drill-hole Data

Gold in narrow, discrete zones..


So GMV have managed to increase the project resources by a small 244% from Placer's original "geological estimation" of ~154,000 ounces of gold to >500,000 ounces?

Official Mexican Hat Resources, GMV resources Feb 2016

They must have drilled a crap load of drill-holes. Here are all the historic holes.

Black = Placer Holes
Here are all the holes drilled by GMV, but please be careful, as you may be amazed at how they have swiss-cheesed El Sombrero. Here are the 2016 drill-holes.

so, 15 holes?
Looks to be 18 holes in 2011 and 15 holes in 2016, and a few holes this year, so I'm sure that they hit massive thickness of high-grade gold. I assume that they forgot to put them in the PRs?

So, we have gold in discrete, narrow zones. A massive increase in resources, but without a huge amount of drilling? How does that work?

I'm sure there is nothing suspicious, but just a couple of questions:

  • When will GMV release the results from the 3 holes completed in May (link)? We had a bit of text in the July 12th release (link), could be get a table?
  • How has the rest of the drilling going? You Told us that drilling started in July (link), so no holes have been completed and no results? When will we get to see the results?
    • RC rigs can easily drill 200m a day (so should be completing a couple of holes a week)
    • You have an assay lab in Tucson just 72 miles away, a 1.5 to 2 hour drive
    • Labs normally take 2-4 weeks to process and analyze samples
  • You also told us back in May that you completed the 1st diamond hole in the 2017 drill program. When will we see the results from this hole, it has only been 4 months.
You should have a good chunk of the results, did you get any huge intercepts like those in the Feb 2017 PR (link)

This project smells of BS, and the company have demonstrated that they are more than happy to massage results to present a small, crap project in the best light possible.