Ann: ARL SMM and MC to form a JV to develop KNP Goongarrie Hub, page-241

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Gutshot99

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03/05/24

08:33

Post #: 73642928
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Originally posted by DDTRH: ↑

Ok, adding further clarification, then.

ARL's reserves are in only the Goongarie tenements.
In addition to the Goongarie reserves, Goongaire has also the resource. The ratio of reserves to resource is now roughly 60:40.

The Ni ores in the non-Goongarie tenements are all resource, not yet meeting the reserves criteria.
A rough estimate is that ARL's total Ni resource is 3x that of its reserve.

Furthermore, the formal MRE statement mentioning the global resource includes the reserves component. It is important to distinguish their separate compositions.

Q1: When does the resource becomes the reserve?
A1: When it is formally converted from resource to reserves. The conversion rate depends on more drilling to be carried out, eg. by Mick and the boys.

Q2: When is the conversion done?
A2: When the drill cores are assayed by independent labs and the results come back showing that they meet the prescribed grade.

Q3: But aren't the drilling already done and results announced months ago?
A3.1: Yes, they were. But the drilling campaign was not evenly spreaded out over the tenements.

A3.2: Selected areas were densely drilled at 20m x 20m spacing, which provided the "proven" status of the ores.

A3.3: Other areas were less densely drilled at 40m x 40m spacing, which provided the "measured or maybe probable" status of the ores.

A3.4: Yet other areas might be drilled at only 80m x 80m spacing, which provided the "indicated" status of the ores.

A3.5: Following from the drilling results, the method of nearology plus a few drillings might be used to "infer" the amount of ore resource in the undrilled areas of the tenements.

Hope that helps.

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Many thanks that clears it up. Cheers

ARL Price at posting: 65.5¢ Sentiment: Buy Disclosure: Held
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