A lot of this doesnt make full sense to me. They just wrote off 91,000oz in Ore Reserves for Westralia underground , and yet supposedly have been diamond drilling the underground Resource for 12 months? That in itself requires some further elaboration from the company. By "wrote off", the page has been ripped out of the mine plan, incinerated, the ashes placed in an urn and then fired into the middle of the sun. Those ounces aren't coming back.
Presumably some of the Reserves in the existing development levels were impacted by this 91,000oz write-down as well. So in all likelihood there's fewer oz per vertical meter and subsequently less cashflow even if the margins on the remaining in-situ oz are positive. Sounds like if the capital had not already been sunk into the ug, it would never have stood up to economic scrutiny knowing what they know now.
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- Ann: 2021 Mineral Resources and Reserve Update
Ann: 2021 Mineral Resources and Reserve Update, page-33
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