A lot of people reading these posts would be confused by some interpretations put on the PFS.
For example, whereas there was a presumption based on previous announcements by many that silver credits might carry the cost of mining the PFS suggests this might not be the case.
To really know where the project is likely to go, notwithstanding the PFS, we have to appreciate that the existing resources of 1,800,000 oz. Au and 20,000,000 oz. Ag is a composite of both Base Metal Carbonates and Roscolite ores, interspersed with Transitional ores.
The whole issue here at Mt Kare has to be understood in the context of these two different types of identified mineralization.
Essentially, the Base Metal Carbonate dirt is not high grade Au. but is high grade Ag.
The Roscolite ores are light in Ag. but have bonanza Au. grades.
It seems that IDC is intending to mine as at Porgera, starting with a (blended) 1,000,000 million oz. Au of the high grade gold ore, stockpiling the lower grade Base Carbonates for later processing.
The reference to a 1,000,000 oz. Au to be mined is a reference to the dirt selected for mining, to be held as a mining ‘reserve’, in the initial 8 years of operation.
It is undoubtedly not a reference as to the actual resource at Mt Kare.
A PFS is NEVER an accurate statement on the longer term viability of a mining project, but more, a reality check with the purpose of defining where the work needs to be done in a BFS study to bring a project into a model which maximizes profitability.
We could expect to see these numbers change to the positive by anything up to 18-20%.
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