The Nugget Effect

The gold distribution at Goldboro is subject to a “nugget effect”. In the case of Goldboro, gold appears as large nuggets, fine disseminations within or bordering arsenopyrite crystals and fine gold grains associated with carbonaceous material. This particular distribution of gold grains may explain the fact that regular assaying methods (e.g. fire assays) yield lower gold values than a metallurgical balance from mill-tests.

As outlined in the 2006 43-101 technical report, a comparative analysis of metallurgical tests done in 1989, 1990 and 2005 and historical fire assay (FA) results showed that the assays significantly underestimated the recoverable gold content and the Mineral Resources due to the nugget effect brought on by assaying smaller size core samples.

Date# of SamplesComposite WeightAssayed GradeMetallurgical GradeRatio
April 1989425 FA1,284 kg1.06 g/t Au15.41 g/t Au14.54 x
November 198966 FA5 kg2.94 g/t Au9.21 g/t Au3.13 x
April 1990153 FA6,000 kg1.96 g/t Au3.00 g/t Au1.53 x
April 1990153 FA5,000 kg1.27 g/t Au4.00 g/t Au3.15 x
August 2005285 FA1,440 kg1.94 g/t Au2.85 g/t Au1.47 x
Total1,082 FA13,729 kg
Weighted Average1.62 g/t Au4.51 g/t Au2.78 x