Ann: Diggers and Dealers - Corporate Presentation, page-55

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plough

34,265 Posts.

1907

08/08/24

17:14

Post #: 75129990
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Originally posted by calmbeforestorm ↑

The first image below is from the Dec 23 MRE upgrade and compared to the latest MRE (second image) the grade of NN UG has increased from 6.88g/t to 9.0g/t or 30% higher while the ore amount increased from 3.89mt to 4.97mt an increase of 28% resulting in additional UG resources of 577k Oz an increase of 67%.

The changes in tonnes, ounces and grade imply the following:

1. The additional ounces of 577 Oz has a grade of 16.6g/t (holy moly times 2) quite incredible really. To have such a large increase in the grade within 6 months of drilling is quite amazing - now we know why SL kept stating exceptional assay results.

2. The inferred grade went from 5.58g/t to 9.95g/t an increase of 68% (holy moly!) while the indicated grade went from 7.4g/t to 8.74g/t an increase of only 18% but over a bigger resource up 76%

3. The ore from the Dec 23 UG MRE (indicated and inferred) was 3.89mt which seems to have been fully turned into indicated of 3.88mt ie the infill drilling turned the inferred grade from 5.58g/t at Dec 23 to a grade of 11.3 g/t an increase of 93% - holy moly times 3!

Now we really do know why SL repeatedly stated ‘exceptional’ in the assay announcements. Also Pepper grade at 7.66g/t is very high but will we see that grade increase significantly when they drill out the deposit to indicated status - same applies to the inferred part of NN?

Do I believe the grade of these additional ounces are so high? Probably not - I think it may be a mixture of a change in modelling and a true increase in grade. I must admit I am quite puzzled why the grade of the underground resources has increased so much.

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"1. The additional ounces of 577 Oz has a grade of 16.6g/t (holy moly times 2) quite incredible really. To have such a large increase in the grade within 6 months of drilling is quite amazing - now we know why SL kept stating exceptional assay results.'

I checked your numbers as thought they must have been BS , (no disrespect) but they look correct
That will be some seriously cheap AISC for those extra ounces
at a 2 gram a tonne cut off and 16.6 grams a tonne guessing somewhere around $450 AISC per oz
ie at $3600 / (16/2) = $450.00 AISC
Welcome to be corrected
Lets say AIC of $700 an oz
3600- 700 = $2900
2900 * 577K oz = $1.7 Billion cashflow

SPR Price at posting: $1.12 Sentiment: Hold Disclosure: Held
12 Upvote

1 Great analysis

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