Ann: Robust Phase 2 Scoping Study for the Estelle Gold Project, page-98

I think with a 0.9 year payback, funding would be reasonably likely, but still requiring higher-level confidence - BFS, certainty about the resources, and road/power.


But, they would not want to lock in the 6mtpa plant size and current level of ore sorters, if the resource is still evolving quickly. It's a 'large' resource, but not a 'mature' resource that is mostly drilled out. At the current rate, it is changing drastically every 12 months. Korbel -> RPM -> upgrades -> downgrades -> cathedral -> checking the potential of Train and RPM Mid.

Once the evolution slows down, it'll be time to lock in the numbers, and begin the final stretch to development (indicated + measured + BFS).

You can imagine the difference between:

1. A project that fluctuates +- 50% in a year (eg. NVA barely knowing if a plant is more likely at Korbel or RPM, and adding 2moz of brand new inferred resources at Cathedral).
Vs.
2. A project that fluctuates +- 10% in a year (one that has finished drilling most of its resources, and has high confidence in exactly how the project would be developed).

The 2nd one is the project that is ready for development. The 1st project is changing so rapidly that nothing is ready to be locked in, or it could easily be a sub-optimal path, and need to 're-do' things later.