andash , page-43

I know what you mean Melua.
My view on where this can go is very high too, and I can understand you wanting to stay very conservative.
I also started as conservative as possible, but with the fast pace of developments I have had to re-asses just as quickly.
I like to stay within reasonable assumptions.
The size of the initial Jorc resources took me by surprise on all three prospects.
I thought they would need to do a fair bit more drilling to define those resources.
It will make no sense for me not to factor in the heap leach now.
Management sees it as a logical and highly profitable way of expanding production for a very low upfront cost and so do I.
I know this may be getting repetitive, but it's important; they have 18 years worth of ore at the 2.9g/t grade, and there will be plenty of lower grade ore that is mined as pre-strip of the high grade ore.
What are they going to do with ore that grades 1-2g/t?
Stockpile it for 18 years until they run out of high grade material?
That 18 years assumes they don't find any more ore on top of the initial Jorc resource.
I see no realistic chance of that and no realistic chance of sitting on that lower grade ore for too long.
Either they expand using heap leach or if the FS shows an expansion of the CIL plant is the better option, then that too boosts the economics in a big way. The CIL operation is a proven method on site.
I can't see any realistic reason too value Burnakura based on only a 250,000tpa operation- not even as a base case.