someone pushing price down, page-96

Hi bob; my main point is that in the current climate (rising POG) that it maybe economically viable to continue mining OP. Yet ABU in Dec 2015 state it is not economically viable to cut back the walls of OP (see below); also they mention nothing about Golden Hind???

The 2015 Resource statement states OP having 640,000 oz yet mining till mine closure will likely only result in 30,000 oz. This is staggering insult even using only the indicated resource of 225,000 oz the error is a whopping 750% if they walk away from mining OP; I believe in geological circles if a geo is in error by 30% then it is considered shameful.

To date there has been no update of the resource for OP so currently we are on HC debating whether they should keep mining OP or not yet we do not know if there is gold below the cut off depths stated in Dec 2015. We don't know if the 2015 resource statement a complete load of rubbish; also there are rules and guidelines in JORC 2012 for reporting a resource; granted it is not as accurate as reserve but remember on 2 occasions (2013 & 2014) ABU stated via the ASX they would upgrade to reserve before mining of OP; again mis-reporting.

I think management needs to address concerns even with a downgrade of grade there should still be at least over 300,000 oz of gold at OP; alternatively they must come clean and revise the resource statement and then try and explain why an error likely above 350% IMO occurred with the resource statement. One must not forget ABU promoted OP as the highest un-touched mine in Australia (2013 ann report); likely mis-reporting way way beyond acceptable ASX standards.


Extract from JORC code 2012
"Portions of a deposit that do not have reasonable prospects for eventual economic extraction must not be included in a Mineral Resource."


Extract from ABU ASX announcement (24-12-2015)
"Old Pirate Central and Old Pirate South pits being reduced by 10 metres and 25 metres respectively. It was concluded that cutting back the walls on any of the pits to extend mining at depth was not economically viable, based on currently available processing options."



Ref of images below 2015 Ann report


OP resource statement from 2015 Ann report (ha ha ha ha)