Their slides yesterday explained their thinking behind the optimisation more. In my opinion they have not done it correctly, and it doesn’t demonstrate RPEEE.
They have determined the cut-off grade is 0.3g/t by looking at other companies cut-off grades (which is OK) and then optimised a shell that essentially captures the same metal as the unconstrained (no shell) resource material (‘to match the calculated Mineral Resource Estimate). This shell happened to be at $2500USD, but it could have been $10,000USD. This optimisation process is not demonstrating Reasonable Prospects for Eventual Economic Extraction because the gold price is $700 (39%) above spot is very very optimistic.
The process above is not how optimisations are normally run even for MRE. It is not a max gold process, you want to constrain the gold at a realistic gold price.
The question then is, how many ounces would have been in a $2000 or $2200 shell? 100koz, 300koz, 500koz?
Ann: Pause in trading, page-32
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