Saturday, July 11, 2015

8 million tonne drill program?

Chidliak to date has about 3.3 million tonnes in the inferred category resource that can be used for the upcoming PEA.

The question is - how much material can be added to that inferred category?

A tabulated view of the inferred and TFFE material can be shown here -- Resources and TFFE

TFFE - Target for future exploration. This basically means they know kimberlite is there..but are unsure of the maintain a minimum and maximum volume range.

Going into the PEA, the maximum amount of near surface inferred material will have the best outcome.


 CH-6 has about 1.8 to 2 million tonnes of TFFE material above 250 metres that can be converted with more drilling. Part of this is the adjacent kimberlite-C material that did not manage to get an LDD hole this past Bulk sample. The plan will be to get significant core drilling to get the data needed out of this material.

CH-7 has 3.7 to 6 million tonnes to move from TFFE to a maiden inferred resource (down to 290 metres). A signficant amount of work has been done based on the bulk sample work where the valuation model will come from. That is the main sticking point for converting a good chunk of this material. Whatever doesn't enough have enough core drilling to define it should get more core drilling during the summer to convert as much as possible.
Of note, the 3.7 million is above 160 metres and has more information than the 2.3 million tonnes from 160 metres to 290 metres and that is where the range comes from. More drill holes will probably be needed below 160 metres to firm up conversion of that material.

CH-6 has another  1.3 to 2.3 million tonnes of TFFE from 250 metres to 380 metres that can be converted. Converting some of the upper part of that using cole hole drilling would be ideal as the economics of the pit may still go below 250 metres at maximum depth.

The first 2 priorities can lead to an 8 million tonne addition to the existing 3.3 million tonnes of inferred material. Potential of close to 11 million tonnes for the PEA study.

Not sure how feasibility that target is for the PEA...but that should be the upper goal.

Remember, the initial PEA will be a pure Base Case and anything not converted yet, will be added at a later date.  Also, CH-44...which will be missed out of this PEA, has an additional 1.2 to 3.1 million tonnes of TFFE for future studies....Don't forget about all the other kimberlite pipes that have potential in the right navigation bar of the blog.

No comments:

Post a Comment