Gold granite until 5km deep, 2011 mining start

Discussion in 'Stocks' started by cossidum, Dec 15, 2010.

  1. cossidum


    There is no gold in granite. That miners had been thinking this for long time, seems big luck for Cortona Resources. The Australian explorer was able to secure the biggest historical gold field of New South Wales. In the region around Braidwood more than one million ounces gold were produced
    mostly by washing gold out of river sands. The origin of this gold is the granite underneath.

    2011 Cortona is going to build its first mine. With roughly 50,000 ounces annual gold production this mini mine is supposed to finance exploration of the 700 square kilometer granite landscape near Canberra. Since end of November definitive feasibility study is out. It confirms an economically robust basis for the Dargues Reef project.

    5 to 6 grams of gold per tonne is the average grade of the first reserve 'baby' of Cortona, that was announced recently. It's based on an area of approximately 200 times 100 meters, that was defined until 500 meters deep. According to the hole drilled so far the mineralization is 'open laterally and at depth'.

    According to seismic studies the host granite is 5 kilometers deep. „There's nothing there to stop that gold, that mineralization necessarily“, said managing director Peter van der Borgh last year at the conference „Resourceful Events“. Yet to increase the annual gold production, Cortona decided to explore the shallow gold occurrences immediately next to the planned mine first.

    250 meters around the planned mine gold has been discovered in seven places. The occurrences are not defined yet, as isn't the 'Ruby' lode next to the maiden reserve either. „Now is the right time for us to have cash in the bank and expand our exploration program“, says van der Borgh, who got the company $2.7 mill. by selling a project in West Australia. With that Cortona has $ 7 mill. for exploration. Completes Sale of North Monger 1.12.2010.pdf

    The drilling results from this year include 11.3 meters with 12.4 grams gold per tonne, 22 meters containing 5 grams per tonne, but also 3.8 meters with 143 grams per tonne. Van der Borgh underlines the „remarkable“ continuity of the mineralization in the granite, that also has the advantage in mining of offering very solid walls. „This is not about narrow high grade quartz veins, here every meter will earn money.“

    Where gold can be found could be seen first when so called seismic and IP studies where made. On the 35 times 20 kilometer granite landscape they show a extensive narrow net of former hot fluids from devonian times slicing through the granite. Where this former fluid rivers crossed, gold can be found. When the drilling results confirmed the model, he „completely freaked out“, says van der Borgh.

    To finance his first exploration license and lay the basis for Cortona the geologist sold his house some years ago. „I will not tell you, what my wife said“, says van der Borgh, but adds „meanwhile we have become happy renters.“ At the University of West Australia he was part of a team researching the development of the world's biggest ore bodies at the so called GODs project (Giant Ore Deposits) . The old time miners of the late 19th century in his opinion literally only scratched the surface.

    „There's gold sticking out of the ground all over the place“, the Australian concludes in regards of the discoveries made until now and laughs from the heart as he explains a map with ip data of the Braidwood granodiorite to investors. At the stock exchange Cortona is still undiscovered. With A$35 mill. market capitalization the company is a dwarf.

    The first mine near the old cold digger small town Majors Creek shall enable Cortona to explore the plethora of exploration targets step by step and lay the financial basis for a series of mines. For van der Borgh the future is clear: „For me this is a long term project, I don't want to dust off my CV again. Indeed in the license area we see a new gold camp emerging.“
  2. First sentence "I lost my baggage due to sand storm, there for no literature" and "We are a little bit undervalued"

    I think Tim Sykes will be on that like white on rice!

  3. auspiv


    Do you know how hard it is to mine stuff from granite, one of the hardest rocks you can find in the earth?

    I'll give you a hint: it is not easy.
  4. Joopeter


    they wrote $628 cash cost per ounce (i looked it up in DFS). when gold bubble finally bursts and price corrects to lets say to 700 or 800...