Sometimes the grade goes up and sometimes it goes down, but the certainty about what you have goes up.
When you have an inferred resource you have quite high error bars on the high and low side, but as you continue to drill you get closer and closer to the real resource grade (the error bars get smaller). Ultimately what is worth more - a resource you a very confident in or one that could be much higher or lower than you thought? Do you want to spend tens or hundreds of millions dollars building a plant to find out you have over estimated the resource? This is the reason banks demand infill drilling.
In the case of Baldwin it is my opinion that by the time they have finished drilling we will be sitting on one of the greatest, if not the greatest, undeveloped base metal & silver deposits in the world. I hate that Baldwin is in Burma, but it is potentially so huge that I am willing to take on the sovereign risk.
MYL Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
