The main point in my understanding is not to increase the size of the resource (although I think this will happen quite substantially as part of the upgrade following recent drilling) but to upgrade more resource from inferred to at least indicated category.
The key is that under the JORC Code, inferred resources cannot be included in an ore reserve.
The current resource stands at 3,060t at 13.1% Davis Tube Recovery for 400Mt of concentrate, but 268Mt of this concentrate come from inferred resources and cannot be included in the ore reserve estimate.
The current ore reserve stands at 755Mt at 14.7% DTR for 111Mt of concentrate, and it is this ore reserve that we need to get to 400Mt concentrate to demonstrate 20Mtpa over 20years.
All we really need is infill drilling to bump up the confidence level of the 268Mt to at least indicated category so it can be included in the ore reserve to demonstrate 20 Mtpa over 20 years.
Any increase in overall resource size would be the cherry on top for longer mine life...
All IMO, correct me if I'm wrong.
HIO Price at posting:
44.0¢ Sentiment: Buy Disclosure: Held
(20min delay)