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The semi - variograms of the other variables show poor, less defined structures. The ranges are <br />much shorter (2000ft — 5000ft) and a rapid increase in variability is noted over small distances. <br />Conclusions <br />The data density in Collom has provided sufficient information for a global estimate for the <br />resource for the pre - feasibility study, but is too widely spaced to provide reliable local estimates for <br />the quality variables. Additional infill drilling will be required to improve the confidence of the local <br />estimates. An initial drill grid of a maximum of 2000ft should be initially considered, although this <br />will also depend upon the required resource block size. As a rule of thumb, the block size should <br />not be smaller than one half to one third of the drill spacing. If the block size is too small, then <br />smoothed estimates will be produced which will not reflect the true variability of the quality <br />variables. <br />A similar geostatistical study should be repeated once the infill drilling program has been <br />completed, the results of which may suggest that further infill drilling may be required, especially if <br />the variogram structures are of poor quality. <br />John.Forkes <br />Attachments: None <br />Page 2 of 10 <br />