Not quite sure where you are going with this one mate as you seem to have the resource/reserve concept a bit mixed up maybe? Geology/mining - two sides of the same coin. Anyway, in anyones' language 2,000+ oz/vm is excellent. Consider that underground capital may cost $100k/vm (that's decline, vent, xcuts, SP's & the like) for a modest 700,000ktpa mine. Assume that after all the stuffing around you'll get about 85% tops of the mineable resource. The percentage of the resource that is actually mineable is a function of the geology, mining method & mining costs. A resource to reserve conversion of above 75% would be a fair assumption given the cross sections I've seen in some of the IGR presentations. At the current gold price a good cutoff is 3g/t. Throw about $60/t at the ore as a production cost & you should be ok. Hope these wild assumptions help. And don't forget - it's a 'decline'.
Hardrock.
IGR Price at posting:
58.5¢ Sentiment: Hold Disclosure: Held
