Ann: Strategic review of Bardoc Gold Project, page-120

"a gold mine is a hole with a liar up top" -- Mark Twain got burnt in his investment

A little tip on Resource Estimation to noobs : don't overlook their gold price assumptions when you do comparison with peers

If gold price is brought down from $1800 to $1600/oz in feasibility study, margin diminishes, as a result the cut-off grade has to be raised when producing cost (or AISC) is too high, in turn the size of the resource goes down.

Conclusion: size of resource is not a fixed number and can be manipulated.


A little goldie on ASX about two months ago declared a 1.35 Moz resource at a disgracefully low cut-off grade of 0.29g/t for their underground mine, simply to meet the minimum resource size requirement for directors' performance rights. hahaha

If you take into consideration of the gold price assumed by BDC in DFS, at current gold price the 3 Moz is not conservative at all.