Maybe, maybe not (on total MRE increasing) ... that would depend on their end goal strategy for production and the MXR acquisition tips that off pretty well.
Remember I opened with a PFS should be 70% - 80% M+I. Right there tells you there need signicant infill drilling to occur for PFS as overall the Inf/MRE (Mandilla only) is ~46%. And I would like to see a 50/50 split (minimum) on the M+I (so 40-40-20 for M+I+I) primarily because I'd like to see Proven Reserves in addition to Probable Reserves for the DFS (not PFS).
And what I was getting at with the spacing for example is IF the present Inferred tonnage is a result of say 150m spacing so lets say over a 1.5Km strike length I start with my first hole at 0m and then drill every 150M and thus my 11th hole is at 1.5Km. IF the infill then was drill 10 holes at 75m, 225m,375m ... then I would like be able to convert (and maybe even increase) the Inferred to Indicated. Simplistically speaking. And we make a similar call on the present Indicated tonnage to gain some of that to Measured. And surely we would "test the edges" or even add from the exploration targets (adding tonnes to MRE, likely Inferred but maybe Indicated with some strategic holes).
And I agree that the gold price has the biggest effect in the tonnes already indentified - but can I have some more, please. I want the "Order of magnitude impact" - those are Marc's words as stated earlier.
I don't agree with "Reserve will be attached to PFS. M+I ounces in the PFS will form the reserve". That might be my interpretation though of what you wrote as opposed to what you may have meant??? The key is Measured and Indicated (M+I) and yeah you can "pretend" in the PFS by looking forward what the conversion of M+I might be. Measured converts to Proven Reserve Indicated can convert to Probable Reserves - its a signal of lower confidence. That conversion is the application of all modifying factors wrt to production
I am confident that, whatever the eventual numbers are, we'll be happy shareholders.
AAR Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
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