Ann: Potential to Extend All Three Boorara Deposits, page-5

The Co is initially targeting open pit to 120m's... figure 5 is giving a rough idea of the the possible pit sizes [about 100m's wide for the Southern stockworks and about 250m's wide for the Northern] and the drill results for the Northern look OK from surface.

The MRE when it comes out will give the definitive numbers ... but my 'back of envelope numbers' look good to me. I am basing my assumptions on the actual grades they got from the trial pit which gave 2g/t with a recoverable 1.7g/t. My numbers are:-
Dolerite =2.8t/m³
Average width of dolerite 40m's [containing stacked veins of varying width up to 20m's]
Strike length 1500m's and initial depth 120m's
40m's x 120m's x 1500m's x 2.8 x (2g's ÷ 32) = 1,260,000 ozs in-ground gold.

My estimate is ...1,260,000 x 0.85 = 1,071,000 ozs of recoverable gold for the first 120m's. What we do not yet know is how much wastage is involved in the pit designs.. my guess is we can get at least 500,000 ozs out very profitably. [I am assuming a cash profit of $300/t which gives an overall profit of $150M for the first 120m's]

As far as the grades at depth .... the Co needs to drill at 115 degree azimuth to accurately assess that... which is something we probably wont get an answer to for quite some time.

The takeover of PGO might yield a better price or it might not .... $2M is going to be well spent by MRP at this stage imo.