Did you read the press release fully? What about the fact that the Strathcona method (sample tower method) would have generated 96% less than what was recovered from milling?
Preliminary figures from the processing of the 426585E cross-cut show the contained metal included 281 ounces of gold. It is the opinion of both Pretivm and Snowden that there is a significant difference in the contained gold estimated by the selective sampling of the 426585E cross-cut by the sample tower and the actual contained gold determined by milling the total 2,167 tonnes of material excavated from the 426585E cross-cut (there is 94% more gold produced from the mill than was estimated from the sample tower results for the same material). A related discussion on the sample tower component of the Program, Strathcona's stated reasons for withdrawing from the Program, and Snowden's response is set out below.
About 4.0 g/tonne gold and around 7.6 g / tonne silver, while the company expected 4.6 and 6.8 resspectively. It is detailed in the press release:
The 426585E cross-cut excavation cuts through portions of three Feasibility Study stopes (the "426585E Stopes"). The tonnage processed and the grade of the gold and silver produced from the material excavated from the 426585E development going through these stopes was estimated to be 1,451 tonnes grading 4.6 grams per tonne gold and 6.8 grams per tonne silver, based on the preliminary mill results estimated for the 426585E Stopes. The value of the gold and silver produced from the 426585E Stopes was estimated to be $204.03/tonne at Feasibility Study base case metal prices providing an operating margin of $47.57/tonne over Feasibility Study operating costs.
Investors need to remember that each of the bulk samples are NOT homogenous but heterogenous - so you cant just multiply the gold milled times 5 to get the expected amount for total milling. Different bulk samples have different expected recoveries.
This may be a decent buying opportunity as investors misinterpret the results.