This is an interesting announcement. They have moved more of the Measured and Indicated resource from BP33 underground into the reserve bucket (meaning potentially they do see medium to long term feasibility in moving to underground mining).
To put the above picture into context which is really what the Ann is saying, you need Measured and Indicated
resources to do feasibility studies, as establishing these
resources base are more about geological confidence. Your feasibility studies, which essentially are preliminary studies around METS/economic factors in this Ann IMO etc get you into the reserve category, and it is reserves that you mine btw.
Not all the 'probable reserves' ultimately get mined as when you go through the more specific DFS/bankable studies some of these drop of but in getting a probable reserve you have IMO IMO a 50% confidence level that half of it is economic to mine IMO IMO. If others disagree would be interesting your thoughts.
The more interesting aspect of this announcement too me is the interpretation of this table.
The Ann states that the Measured Resource has found its way to the Proven Reserve category, whilst the Indicated resource found its way to the Probable Reserve category. It would appear that a very limited amount of the Indicated resource has found its way to the Probable reserve category, which means there is potentially significant upside when lithium prices improve and/or more detailed studies are undertaken. Obviously if CXO undertakes further exploration they may also identify more Measured and Indicated resources and Inferred resources, as well as moving the Inferred Resource above into the Measured and Indicated category
Based on the table below:
1. Around 47% of the measured resource found its way to the Proven Reserve category.
2. Only 29% of the Indicated resource found its way to the Probable Reserve category.
3. Obviously none of the Inferred Resource is considered a reserve (which is an obvious point by me)
Did this as a matter of interest but if others find it useful that is good.
All IMO IMO IMO
(20min delay)