Ann: Chairman's Address and AGM Presentation, page-72

First 72 Last

Share
Profile

Follow
Suni

3,152 Posts.

745

08/01/24

14:52

Post #: 71777213
Share

Originally posted by LD99: ↑

Here is where the importance of getting the costs (and cut-off grade) right comes in. If a cut-off cost (and grade) is set significantly lower than the actual costs that are expected, a significant amount of low-grade material may be kept in the mine plan. This material will reduce the margin and total revenue of the mine. This error is one of the most common and serious mistakes I see when reviewing both new projects and operating mines. The assumed base cost fails to adequately cover all the costs that will ultimately be incurred.

Establishing a realistic cut-off cost will establish a realistic cut-off grade which will establish the tonnage and grade of the resources and reserves for the deposit or mine. Simple block counts from a resource model will not provide a realistic (potentially recoverable) tonnage and grade to evaluate the deposits economics. The physical continuity and grade distribution throughout the orebody must be taken into consideration to adjust the resource tonnage/grade curves to approximate a potentially mineable resource. Mine design tools can create very good approximations of reserve potential very quickly. All-In Sustaining Costs (AISC) should be used to establish the cut-off cost (and cut-off grade).

Given that OD6 hasn't got any type of study, let alone a MRE, it cannot feasibly estimate its costs with reference to just the adjacent deposits nor use an arbitrary number like 1,000 ppm accurately etc. With a cut-off grade only slightly below the overall grade of the mine it has massive red flags.

Expand

Well done LD you can copy and paste.

In a nutshell how does that differ from what I originally said. Project economics sets MRE.

OD6 Price at posting: 14.0¢ Sentiment: Hold Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

CTT

Cettire shares jump on FY24 revenue growth up 80% vs pcp – but stock still badly bruised

ATH

Trial for Alterity's neurodegenerative drug ATH434 shows reduced disability

AI stocks: What to expect in 2024-25

NWC

New World Resources inks complete PFS for Antler Copper Project in Arizona, USA

LRL

Labyrinth shares rocket by 219% on news of Comet Vale and Vivien gold project acquisitions

There are more pages in this discussion • 9 more messages in this thread...

First 72 Last

Add OD6 (ASX) to my watchlist

(20min delay)
Last 5.0¢		Change -0.003(5.66%)		Mkt cap ! $6.691M

Open	High	Low	Value	Volume
5.0¢	5.2¢	4.5¢	$7.738K	153.1K

Buyers (Bids)

No.	Vol.	Price($)
1	15021	4.7¢

Sellers (Offers)

Price($)	Vol.	No.
5.3¢	100000	1

View Market Depth

No.	Vol.	Price($)
1	15021	0.047
1	13286	0.045
1	10000	0.041
1	21000	0.038
1	15997	0.037

Price($)	Vol.	No.
0.053	100000	1
0.059	80000	1
0.062	161290	1
0.065	62555	2
0.066	51000	1

Last trade - 16.10pm 17/07/2024 (20 minute delay)

OD6 (ASX) Chart

Ann: Chairman's Address and AGM Presentation, page-72

Cettire shares jump on FY24 revenue growth up 80% vs pcp – but stock still badly bruised

Trial for Alterity's neurodegenerative drug ATH434 shows reduced disability

AI stocks: What to expect in 2024-25

New World Resources inks complete PFS for Antler Copper Project in Arizona, USA

Labyrinth shares rocket by 219% on news of Comet Vale and Vivien gold project acquisitions

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Chairman's Address and AGM Presentation, page-72

Top Stories

Cettire shares jump on FY24 revenue growth up 80% vs pcp – but stock still badly bruised

Trial for Alterity's neurodegenerative drug ATH434 shows reduced disability

AI stocks: What to expect in 2024-25

New World Resources inks complete PFS for Antler Copper Project in Arizona, USA

Labyrinth shares rocket by 219% on news of Comet Vale and Vivien gold project acquisitions

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News