ARNGF - Argonaut: Reserve Projections For Magino Mine Should Be Treated With Caution
Argonaut Gold boasts its Magino Mine, an advanced development project in Ontario, contains reserves totaling 59-million tonnes of ore and over 2-million ounces of gold. Given the structure of the deposit and Argonaut's reluctance to reveal how it determined true widths of ore bodies, a closer look at these estimates casts doubt as to their accuracy.
A critical factor in determining the accuracy of mineral reserve estimates is the determination of true widths of drill intercepts. Simple geometry demonstrates that anything other than a perpendicular intercept of an ore body requires adjustment in order to