Hi all, Does anyone care to analyze this result - ie. 2.1Mt @ 8g/t Au eq?
My novice point of view is that its unspectacular but solid enough. More ore at the lower grade end would make a larger than hoped for chunk of the resource in the marginal area, vulnerable to a fall in price of gold.
It seems they have come pretty close to confirming Triako's 2005 estimate (1.8Mt @ 8.8 Au eq) which was included in the last quarterly, ore volume up but grade down to almost balance it out. Triako used a cut-off of 2.4g/t and YTC are saying $125 - which equates to 2.44g/t at $1450 AU/oz.
If the gold price was much lower say $1000AU, $125 cut off would be more like 3.54g/t. Have they "utilised" $125 as the cut-off as it equates to Triako's cut-off or is this a vague prelude to the feasibility study (ie. ore might be uneconomic lower than $125?). Anyone have an answer to this?
Whatever the reason, the resource estimate is dependent on the gold price, but that seems fair enough to me as the value of the project (which is what we really care about) is always going to be dependent on gold price and extraction costs anyway. Looks like we'll need results of the DFS to really move the share price one way or another.
Anyone have a prediction for tomorrows market reaction?
YTC Price at posting:
24.5¢ Sentiment: LT Buy Disclosure: Not Held
