Largest G & V in the world?, page-22

Hi manholm you wrote;

"I sold out the last of my TON today because I have lost faith in their management. To my eyes they told us nothing new today. I feel they are pumping by using a weighted average with a 10% cut off. That might be confusing to most investors who only rely on their published W/A figure and therefore wrongly believe that the true average grade is higher than reality. "

Though Syrah did initially use a cut off of 5% and had reported lower average grades than that of today, they soon moved the cut off grade to 10%, 13% and even 20% to highlight their very high grade zones. Here is a paragraph from 21 October 2013, take note of the last sentence where Syr seem to tell the world that anything less than 10% should not be considered hence their move to 10%;


" For mine plan purposes, Snowden’s used a 13% TGC cut off grade. In Appendix 1, Syrah has shown the current intercepts at a 10% cut off and at a 20% cut off. These results illustrate why Balama is the world’s preeminent graphite deposit with impressive widths of graphite being reported even at a 20% cut off. The Lac Guéret and Lac Knife deposits (both of which are in Canada) are said to be the world’s highest grade flake graphite deposits in the world based on claims by their owners. The Lac Guéret deposit has a measured and indicated resource of 7.6 million tonnes at 20.4% TGC. The Lac Knife deposit has a measured and indicated resource of 8 million tonnes at 16.0% TGC. Syrah expects the Ativa Zone, which is a small part of the Balama deposit, to be superior to these deposits in terms of tonnes, grade and mineability. Syrah considers graphite below 10% to be low grade and less economic, although most graphite explorers continue to claim that such material is high grade. "

Syr also said in March 2014;

" The earlier TGC cut off of 5% for the global resource was used to make the reporting consistent with several other graphite explorers which have reported resources using a 5% TGC cut-off. In recent months, Syrah has been using a 13% TGC cut off which in Syrah’s opinion better reflects the current market dynamics for graphite. As such, Syrah will be using a 13% TGC cut-off for this and future announcements. Syrah believes that this is the most conservative cut-off that has been used by any graphite explorer. "


At that time of the above release March 2014, Syr TGC cut off increased to 13% meaning the average TGC increase at Balama East for example was increased from 10.6% to 15.1% TGC.




Why Ton would choose not to report at a lower cut off grade than Syr do currently seems obvious. And yes I can appreciate Syr grades are clearly of a higher TGC to date.

ATB

Pauldola.