Ann: Further High Grade & Expanded Footprint at Hemi, page-399

The divergence is in the assumptions.

Standard back of the envelope estimates assume regular shapes and grades for 100% of the volume. Nature doesn't often (never?) provide this so the estimates for L x D x T x SG x grade need to be reasonable averages of that variability.

Length=800m OK;

Depth = 300m (Implies 320-350m below surface) may be OK but 1-200m deeper than existing drill intersections on the main parts of Aquila.

Thickness = 50m average may be too optimistic. See image below for one example.

Grade = 2.5 g/t The eye/mind tends to be attracted to high grades and not notice the broad zones of surrounding lower grade which drag the average down.



The blue block represents the back of the envelope sectional view for 30000E.
Blocks 1 and 2 are close but 3 is narrow and stops 100m above the depth assumption of 300m.
For this section my volume estimate would be low by 60-70%.
My grade estimate is double the 2.5 envelope grade and probably a tad low now that I look at it again - Bumping blocks 2 and 3 up to 7.5 g/t Au and 3.2 respectively would add another ~4.5Koz to the estimate. A casual $10M....

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Summarising

The major divergence comes from multiple cumulative factors:
Depth much less Minus 30-50%
Thickness generally less Minus 0-60+%
Grade lower Minus 0.7g/t or ~30%
SG will impact on any estimate but since both use 2.5 there is no divergence.

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Klingons or Romulans. "Please note this is not a resource Model"

DEG have all available data and will produce an MRE that will be compliant with Jorc 2012. I suspect most will be inferred but a significant part may be indicated with 30000E Aquila perhaps measured.