can elm anns a gross resource around 500mt

A HC friend who I am in an email contact with, asked me a question today. (He knows the answer if he reads this post now).

Question was this; if ELM could announce a much larger JORC resource than initially targetted 170-300mt and surprise us? What was my thoughts?

I said it is more than possible.
ELM may surprise us at that point and come up with 500-600mt gross resource.
But I didn't want to speculate about it so far as I really didn't wanted to disappoint myself and other HC friends for something which is not so important for a comapny who reallt thinks production. I didn't include the inferred resources in my work either. Inferred resources is the largest portion of the deposit with a limited certainity and not very valaubale for the company as it is very speculative. It is also can not be shown in the reserves. Only the measured and indicated resources can be converted to reserves which is considered as the "assets".

I calculated the measured resources as good as I can, but a rough calcualtion has been done for indicated resources.

Gross resource = Measured + Indicated + Inferred.

Calculating the inferred resources will be done by the JORC experts. I have no idea about how the inferred resource size will be measured (could be from 1.5km to 8km from the hole) by those independent JORC compliance experts. It very complex calculation. The holes circles are overlapping each other as the holes are very close in ELM's project.

So, that's why I am saying "don't pay much attention to STB's gross deposit claims, firstly look what they have got as measured and indicated resources. JORC experts generally won't make much mistakes!

Q: What is JORC?

Australasian Joint Ore Reserves Committee (JORC), which is sponsored by the Australian mining industry and its professional organisations. The Code for Reporting of Mineral Resources and Ore Reserves ( the JORC Code ) is widely accepted as a standard for professional reporting purposes.

"The JORC Code requires that, for a published report to be compliant with the JORC Code in reporting resources, reserves or exploration results, the documentation on which the report is based must be prepared by, or under the direction of, and signed by, a Competent Person or Persons"

Here is the technical information about Measured, Indicated and Inferred resources;

Measured Mineral Resource: +++++ (Proven Reserves) "...can be estimated with confidence...
"...to confirm both geological and grade continuity"
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established< that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

Indicated Mineral Resource: +++ (Probable Reserves)
"...can be estimated with a level of confidence..."
...enough for geological and grade continuity to be reasonably assumed."
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

Inferred Mineral Resource: + (Not in reserves)
"..reasonably assumed, but not verified geological and grade continuity."
"..estimate is based on limited information and sampling"
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

The deductions will be made for unknown anomalies in the official resource estimation;

5% reduction within the measured area,
9% reduction within the Indicated area,
25% reduction within the Inferred area.