Something of interest is old mre reports from the NST Wallbrook...

Something of interest is old mre reports from the NST Wallbrook Mine area just below Crusader. Here is a couple of reports showing the increase in ounces once the cut-off grade was dropped.







I wonder if NXM has done their MRE to what the SAR/NST model was previously, including pit modelling to show what is actually mineable.

Who else uses a pit shell when announcing an initial MRE? Usually it is a case of including all allowable drill depths and spacings with a cut-off grade at around .5gpt to produce an initial figure, then start the process of defining the resource parameters on which to allow mining. This gives companies the best possibility of a surge in the sp and raise the cash to fund the next stage of development.

Here NXM has discounted most of their resource tonnage and the gold within it to bring out a figure that can probably be mined without upgrading the Jorc due to starting at such a high cut-off grade. It appears SAR didn't prove up the original deposits to measured status before mining as they had also modelled the pits at a high enough cut-off grade to feel comfortable that there wouldn't be any significant surprises to the downside.

It's seems an interesting way for NXM to go about things as one one hand they appear to be pitching the project directly to NST, but on the other it's severely reducing the amount of ounces contained in the MRE, which in turn has left many holders disallusioned when most other companies announce much larger MREs with a fraction of the drilling done here, which was around 360 holes.

So what is the benefit to shareholders in limiting the Jorc this way? It certainly seems to be a win for NST if they wish to buy the Crusader/Templar deposits outright. At $250poz, it's only $44m, or about our current market cap which has dropped significantly in the last year. Would they pay this much?

Is it possible that NXM is looking at mining studies with an eye on either a toll treating deal or a 50/50 jv?
At $500poz profit, NXM would make $44m themselves with NST taking care of the mining, leaving NXM to drill out the rest of their areas of interest.
Toll treating would be more profitable long term but would NST bother processing third party ore just for a fee? I'd think probably not, especially as NXM would likely have limited options without having increased costs further away from their deposit and NXM would wear all upfront mining and carting expenditure and any unforeseen risks also.

The top of NXM's pyramid slide used in recent presentations shows the monetisation of Crusader. There has to be a plan here otherwise limiting the MRE makes no sense imo.

Hopefully we get some clarity soon.