Tuesday, July 27, 2010

Results that only a geologist could love

The EVG five day chart...oh look, it sold off yesterday! You mean
the news might have been leaked? Oh shockah!

Here's a link to the latest drill numbers from Evolving Gold (EVG.v), the junior that uses paid shiller Holier-Than-Thou Grandich to throw sequins in the eyes of the retail sheep. But fair is fair, so let's give the company chance to comment first:
Quinton Hennigh, President and Chief Geologist comments, "The consistent presence of gold in our drill holes at Carlin is extremely encouraging. We interpret the widespread and thick zones of gold, regardless of the grade of the intersections, as demonstrating the presence of a large scale gold system. The high grades associated with the altered igneous dike are particularly encouraging, as they suggest the potential for a major deep-seated structure, a possible feeder zone."

Yeah, right. First up, if I had a dollar for every time I'd been romanced with "possible feeder system" by a junior explorer I wouldn't leave the beach. Second up the gold they found was indeed thick, covering a 171.8m zone, but the average grade comes in at 0.31g/t. That kind of grade would be marginal for an open pit heapleacher but we're talking about rock that was intersected at 1135m on the drillcore, i.e. it's over a kilometre under the ground! What about the strip rate on that suckah? :-)

These guys have had a decent shot at drilling for a high grade gold resource on the Carlin trend, but they've come up short, end of story. And these 1300 metre drillholes don't come cheap you know. How you gonna lipstick this pig, Peter?