What's truly astonishing is that current mined grade exceeds not just the target for the upper orebody but also exceeds the forecast life-of-mine grade!
The orebody supposedly increases in grade with depth, peaking up around 2% Cu according to the model. But there is potential for the entire orebody to be richer than first thought, due to these lenses of pure chalcopyrite we've seen in previous reports. They seem to create a 'nugget' effect that wasn't properly sampled by the drilling program.
This may allow them to convert more of the current resources to reserves, increasing life of mine. It also may increase the potential for resource/reserve extensions at depth.
At any rate, the orebody and the operation are both outperforming, as is the copper price - now it all hinges on the costs. If the team can keep them under control we should have a nice little money maker.
AOH Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
