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10/06/19
12:14
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Originally posted by Davisite:
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In the last update the reconciliation to reserves was running at 85%. This is just saying the grade mined was only 85% of the reserve estimate used for the business case (the DFS). The reserve estimate is supposed to be accurate and independent. The same thing happened with GCY where the reserves were estimated to be 1.3g/t, but it turned out to only be 0.8g/t when mined.
These sort of descrepancy are very worrying as the grade is critically important to the value of DCN.
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doc - I thought that 15% variance was reported for that particular month. would you not see that kind of variance in previous quarterly production reports if the reserve estimates were off by 15%?