The commentary said that they can see multimillion ounce potential and the MRE will be updated once RAS is closed off. I take that to mean that they are now aiming for 2mOz plus. They highlighted on the diagram that SHK and CIT have better grades at their down dip extent just like RAS. There are holes designed for those down dip extensions with 10,000m planned for the year. Clearly they plan to go big.
My calculation is that the present RAS extension will add 600kOz for a total of 1.2mOz and with more VG, RAS shows no sign of petering out.
If the strip ratio ends up at 8-10, it will work as an open cut with grades of 2gpt Au. Macraes has been 10 to one strip for much of its life and it mostly had less than 2 gpt head grades.
If the open cut gets limited due to depth, it would be easy to punch in off the highwall and follow the high grade zone down dip using room and pillar which is cheap because there is no development cost, just all ore.
SMI Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
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