The way to assess grades can only be taken in context with the era within which we live. Many years ago these grades would be hopelessly inadequate and the areas drilled would have been abandoned, but the current POG now makes it very worthwhile to mine.
PMI has continued on from Resolute Mining's decision to abandon this area, when the POG did not justify continuation.... all those years ago.... for that very reason.
The PFS takes into account the grades and the quantities.
As far as I can see, the recent drilling has produced grades similar to those contained within the PFS... as well as one low meterage, significantly higher result, so all that has happened is additional value has been added.
This does not seem to infer the most recent drilling is of no consequence.... quite the contrary.
Personally I am not aware of today's opportunity cost when it comes to the "cut-off" grade in assessing the ounces that are contained within a DFS, because they seem to differ from Company to Company.... no doubt for a number of reasons.... also beyond my understanding.
We can all become too smart for ourselves in these scenarios because I feel a little knowledge can be dangerous..... so I feel we have to trust the bottom line in the DFS.
I have become accustommed to accepting what I formerly considered to be unacceptably low grades, but when I read that PMI has grades superior to those of its West African Peers, who are mining the stuff, I have to accept the experts know what they are doing.
We, as shareholders, are not now governed by fundamentals, but more so by the whims and actions of the emotionally governed market punters..... sadly.
Cheers.
PVM Price at posting:
90.5¢ Sentiment: Hold Disclosure: Held
