Club Mulgoa

Friday, October 26, 2012

Rock chips

http://www.proactiveinvestors.com.au/companies/news/35026/rox-resources-lab-assays-deliver-307-copper-at-bonya-35026.html

I don't own shares in this stock.  But I want you to be wary of rock chips sampling.  It is an extremely biased form of sampling.  I have purchased stocks in the past when the results are incredibly good.  But dig below the surface, physically, and then I discovered that I had been duped.  Under certain circumstances, you may put some weight on this method of assessing the potential.  The only thing favourable is nearology to KGL.

I am not a geologist but rock chippings cannot possibly make a big contribution to JORC resource estimation.  It may be a guide to where one would drill but until you get drilling results... it is merely a suggestion.

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