CNB 4.82% 39.5¢ carnaby resources limited

Resource cut offs "only" have to support "eventual economic...

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  1. 41 Posts.
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    Resource cut offs "only" have to support "eventual economic extraction", so there is a bit of freeboard for the management and board to argue price forecasts, exchange rates, expected methods / processes and the timing to production itself. A Reserve cut off is much more stringent: the cut off must make money and there has to be a schedule so you know the timing and can assess whether the views on economic factors are reasonable.

    Another concept behind Resource cut offs is that the deposit has to geologically "hang together" at the cut off - ie display some sort of demonstrable continuity for a likely mining method. The tonnes / grade curve helps to understand if there are drastic changes to the tonnes and average grade either side of the selected cut off grade. If the next increment up in cut off decimates the Resource tonnage, then the cut off selected for reporting highlights there could be issues down the track when it comes to determining the Reserve.

    cheers
    KS
 
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