Ann: RPM Continues to Deliver High Grade Gold as Footprint Grows, page-126

It appears that the inferred resources are not treated as 0.0g/t, but their usage for financial calculations are limited.

If the center of the pit is mainly inferred, and the first 3 years of production must be 80% indicated, 20% inferred, then probably the first 3 years of the mine plan (at least) are severely restrained vs if those resources were upgraded to indicated.

So I think the first 3 years of the mine plan would improve a fair bit if they get upgraded to indicated. And the first 3 years are the least discounted in terms of NPV.

And with it being 70/30 requirement for indicated/inferred for the 15 years of mine planning, while the JORC resource is actually 33/67 (far more inferred, at an equal 0.3g/t grade), it means that there is room for improvement in the later years too.



So it seems that 0.0g/t for the inferred is not entirely true, but the better 58Mt of the inferred is treated as 0.3g/t, and 525Mt is treated as 0.0g/t.

I'm thinking that because:
- Inferred resources comprise ... 30% over the first 15 years of operation.
- SS shows Ore Mined 195Mt over 15 years.
- 30% of 195Mt is 58.5Mt.
- Inferred resource is 583Mt @ 0.3g/t.
- Assumption - inferred resources mostly prove true.

Though, SS shows 0.41g/t Average Mined grade over 15 years.
- So maybe it would instead be -
- SS limited to 58.5Mt of the inferred.
- With the inferred being -
- 238Mt @ 0.4g/t.
- So 58.5Mt of the inferred treated as 0.4g/t, and the remaining 180Mt treated as 0.0g/t.

So the ASX rules cause:
- The SS to assume 58.5Mt of the inferred are real, and 180Mt are not real.
- Thus, if >58.5Mt of the 238Mt inferred proved to be real, the economics would improve.
- Or simply proving up more of the inferred at the center of the pit would allow for improved financial planning in the first 3 years especially (when the rules only allow 20% inferred).