Ann: Tampakan Resource Estimate Upgrade , page-4

I'm not real keen when companies push the envelope on cut offs. Obviously I'm not privy to knowing the extent of the margin with regard to costs and metal price assumptions for Tampakan, but when Cu prices do fall, it tends to be the big low grade porphyrys that fall first leaving a big mess. However, I'll take it on good faith that SMI are leaving sufficient margin here.

So now we have 18% more ore for only 7% more metal. Does that mean the tailings dam will need to be 1km longer? :P

It is a shame the resource statement doesn't at least include a Cu price assumption. This is what my crystal ball gazing had to say back in Oct when Apples alerted us to a pending resource upgrade. Since from around that time Cu has increased about 25% from a low just above $3/lb to today's $3.86.


Post #: 7306300 "Ha ha. All they can do is lower the cut-offs in the face of higher metal prices. Barely a hole has been drilled since."

Post #: 7307124 "From previous 0.3% down to 0.25% Cu equiv perhaps? Might give them an extra 200 - 400 Mt or so. Surely a 0.2% cutoff would be pushing it now after the shake down Cu price has had over the last couple of months."


OK. So those posts were written at the bottom of the downturn in Cu price, and now it has rebounded 25% and we do in fact see a 0.2% cut-off. Maybe Apples that is why you had to wait longer than you expected for these numbers. So they could get a better feel on what copper price might be doing.