Ann: RPM Continues to Deliver High Grade Gold as Footprint Grows, page-119

Am I right about this?

The pink area represents the indicated resource ("0.185g/t block model"), and the entire center of the resource is not ranked as indicated, because of not dense enough drilling (saddle area)? So those inferred ounces are ignored in the SS, right from the middle of the pit?

I couldn't find a clearer image showing the indicated outline vs inferred outline.



In the scoping study, the pit design includes the entire center area anyway?


If they're not allowed to include inferred in the calculations, does that mean that the inferred was considered to be 0.0g/t for the NPV calculation? He also said about mine planning, 75-80% has to be indicated, so maybe they were able to include a little of the inferred.

So if the inferred ounces fall within the pit design that they already planned to dig up, then any inferred resources that prove real would be practically free mining cost? And the strip ratio should improve? Because a lot of the 0.0g/t overburden is actually 0.3g/t inferred resources (if proving real)?

That would have interesting consequences for the SS2. Not only additional ounces, but additional ounces with practically free mining cost?


Mining costs are significant. Higher than processing costs, even.

So I'm thinking it wouldn't improve the first 3 years that much, but would improve the 4+ years the most. The red arrowed stats below. So in terms of NPV, those later years would have already been discounted, but it's good anyway.

But since they were not allowed to include the center of the pit in the financial planning, it could potentially make sense to do the center of the pit first, in which case it could improve the first 3 years too - getting even more revenue up-front, or lower costs up front.


So it's quite realistic to expect AISC to fall because of this? (In real $ terms / post inflation)

It's nice that IRR will rise along with NPV. Lower costs, higher IRR = more margin of safety for investors/lenders.