How to analyse drill results for dummies

[cbs7]

Hi all

 

I've been lurking around for quite a while and slowly building up core positions in precious metals and major mining shares. I'm now looking to understand the junior mining sector a bit better as there is clearly great potential. However, I don't really have a background in anaylsing the resource sector, so I'm wondering how do I go about trying to understand the technical details such as the release of drill results. Is there a dummies guide anywhere on the web that is useful for those starting out?

 

I recently started checking out minesite and look at this site quite a lot but I do have constraints on the time I can dedicate to this, so for example I am interested in Fortuna Silver Mines (FVI.V) and I get daily emails now from golddrivers.com. One from yesterday has this news about FVI, but the problem is I don't really understand whether those results are good, bad or neutral.

 

Any help and advice is hugely appreciated!

 

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2008) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI - News) is pleased to announce the discovery of high grade silver mineralization along the extension of the Bateas Vein located in the central portion of the Caylloma District, Arequipa, Peru. Fortuna operates the 100% owned Caylloma Zn-Pb-Ag Mine at a nominal rate of 820 tpd with production currently sourced primarily from the Animas and Santa Cata veins.

Eleven drill holes totaling 4,380m have been completed to-date in the eastern extension of the Bateas Vein, one of several silver-rich veins located in the central portion of the Caylloma District. Highlights of the current results include:

 

- Hole BATS001707 cut 6,231 g/t Ag, 3.56% Pb, 4.85% Zn and 3.08% Cu over 7.35m from 340.55m (est. true thickness of 1.57m), including:

 

- 30,170 g/t Ag, 5.95% Pb, 6.68% Zn and 9.01% Cu over 0.45m from 343.55m, and

 

- 11,029 g/t Ag, 5.12% Pb, 6.96% Zn and 6.46% Cu over 0.90m from 344.70m, and

 

- 24,487 g/t Ag, 8.43% Pb, 9.98% Zn and 9.45% Cu over 0.65m from 346.05m.

 

- Hole BATS000207 intersected 1,008 g/t Ag over 1.35m from 200m (est. true thickness 0.46m).

 

Assay results from the drill holes are summarized in the table below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag. Estimated true widths of the veins are indicated in the table for each of the major intercepts. A longitudinal section showing the location of the drill hole intercepts will be posted on Fortuna's website at www.fortunasilver.com.

 

 

--------------------------------------------------------------------------

Estim-

ated

True

Thick-

From Interval ness Ag Au Pb Zn Cu

Hole No. (m) To (m) (m) (m) (g/t) (g/t) (%) (%) (%)

--------------------------------------------------------------------------

BATS001707 334.15 335.30 1.15 0.25 497 0.03 1.56 2.63 1.02

340.55 347.90 7.35 1.57 6,231 0.14 3.56 4.85 3.08

including 343.55 344.00 0.45 30,170 0.18 5.95 6.68 9.01

and 344.70 345.60 0.90 11,029 0.29 5.12 6.96 6.46

and 346.05 346.70 0.65 24,487 0.53 8.43 9.98 9.45

BATS001607 133.30 133.70 0.40 0.19 188 0.09 0.01 0.01 -

189.60 189.95 0.35 0.16 295 0.01 0.01 0.03 0.16

BATS000908 323.90 325.60 1.70 1.16 259 0.02 1.31 1.46 0.58

BATS000808 381.38 384.40 3.02 0.72 133 0.02 0.26 0.18 0.11

BATS000707 293.05 294.70 1.65 1.19 131 0.03 0.21 0.21 0.23

296.30 296.60 0.30 0.22 494 0.20 0.16 0.12 0.13

BATS000607 No significant mineralized intervals

BATS000507 258.10 258.40 0.30 0.15 104 0.31 4.84 2.40 0.01

BATS000407 235.95 236.50 0.55 0.26 91 0.05 0.01 0.01 0.00

BATS000307 365.20 366.15 0.95 0.35 840 0.06 0.42 0.85 0.35

BATS000207 200.00 201.35 1.35 0.46 1,008 0.27 0.01 0.02 0.04

BATS000107 246.55 247.35 0.80 0.23 138 0.04 0.01 0.02 0.01

[1waving]

cbs7

 

Have you tried infomine.com, this won't interpret results but may help in general. For instance in their edumine section there is a very helpful dictionary of mining terms.

 

 

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[cbs7]

cbs7

 

Have you tried infomine.com, this won't interpret results but may help in general. For instance in their edumine section there is a very helpful dictionary of mining terms.

 

Thanks walden - I've bookmarked that site

 

Scouring around a bit more I've come across this drill results calculator and instructions on How to convert drill results into ounces tutorial. I'll give it a whirl and see what it comes up with.