Hi twouptom, I think in this case, you might have misconstrued...

Hi twouptom, I think in this case, you might have misconstrued BGLs reserves versus their MRE, versus PNRs, though in the end you are correct, PNR does have a much larger resource and it becomes even more stark when you look at the overall endowment of Norseman, which has already produced close to 6m ounces.



PNRs current MRE and reserves are:

BGLs current MRE and reserves are:



Mind you, BGL has not updated their reserves in quite a while and they have had some seriously impressive drilling outcomes, so... the bar is moving all the time and... PNR is only just about to start up on an exploration program after a large hiatus (plus... when they were drilling back in 2020-2022, it was all about converting resources to reserves, not.... chasing new ounces.

I will also add that BGLs reserves grades are likely to be beaten (for a number or reasons). That being said...
PNRs U/G grades are.... market leading and ironically, if for example, a separate explorer (let alone producer) was sitting on the Mainfield, there is every likelyhood, the company would be worth north of what PNR is now! Note, the resource at Mainfield is not reserves, but... considering the global U/G MRE for PNR is over 50% measured/indicated, it bodes well for future conversion.



I finally got some time to re-read the presentation (as I do tend to look at waaaay too many presentation), and noted a few simple mistakes that show... a lack of polish. Sure... it's not overly important in the scheme of things, but... no mistakes means someone takes extra pride in their work and that likely means it's across a whole company, anyway....

But before I do, I do want to show just how similar BGL and PNR is (though.... BGL is likely aiming to increase their production towards 250k ounces p.a)
BGLs plant and throughput almost identically mirror Norseman (both new plants too).



Ok, so first thing, I noticed, is the upside to the Ok/Star U/G mine, which in the last 2 quarters mined approx 49kt (annualized 196kt).
They have already been able to expand the reserves after production and seem confident of repeating that, with the additional potential of expanding the amount of ore coming from the two lodes. 'Significant' implies perhaps 30-50% increase on the current mining rates, so upwards of 255k-295kt, which whilst not a large amount, if... hitting 5g/t like it has been, that is 38-47k ounces. When you combine that with Scoitia U/G at a full run rate (60k-70k p.a), that is already over 100k p.a. Excluding what they can get from the open pits/stockpiles. Perhaps 600-800kt at 2g/t by years end, with a further 4mt at 0.8g/t. Means a lot of flexibility in regards to what they can do with the plant.

To be clear, if... perhaps by mid 2025, Scotia running hard, Ok/Star has increased too, the plant could still aim to add another U/G mine
Scotia - 450k+ Ok/Star 250-300k leaving... 400k-500k, or another Scotia (unless they can increase Scotia by a large amount). I think 150k p.a is more than achievable without any further plant expansion, but I can understand why PNR (or whoever buys them) will want to do so considering how many ounces are sitting in the current MRE. i.e. MRE of 4.8m implies if they could eventually mine it all at 200k p.a, it will still take 24 years!



The open pit's mentioned again give me pause, as really..... would they be better used by simply drilling out the high grade shoots and going straight underground, as if PNR can run their operations optimally, the plant throughput will be the main limiter, which is not necessarily a issue if the focus is all about profitability, not the amount of ounces for the sake of it.



Though I can also understand that having their available for optionality is important, but again, they have Green Lantern Stage 2 with something like 100k ounces...

Nice to see PNR making particular note of what Norseman is sitting on!



Cannot help but be impatient about the drill rigs not already being on the ground with such a plethora of targets/opportunities.



Hard to argue with their plans for drilling at Scotia, it's all about firming up more reserves and looking for easy extensions. I appreciate the extra details on the potential extensions.




I mean, who knows what they will find... just at the known deposits. As it looks to me like Green Lantern Stage 2 has clear U/G potential....



So much gold.... just needs to be drilling out, to ensure there is no.... slips ups with mining sequencing, grades etc.



They do have a plan, I just think it could be better articulated to the market (hopefully over time they will).




More plans... but again, hard to be able to picture it all coming together and when.



Mistakes from the past won't be repeated.



Suffice to say, that... almost every other small/mid tier gold stock would drool at all the potential and unlike say Wiluna (which I do still think is an amazing system, just... bloody challenging to deal with the complicated met), can and all things considered should enable a professionally run company to make all stakeholders wealthy over the long term.

Nice to see PNR holding so firm with so much selling across the sector..... hopefully a sign of even better things ahead.