This is obviously a phenomenal disappointment for all of us concerned. But it still is withing the range of 0.8 - 1.2Moz which is what PIR were telling us. They were just IMPLYING it was going to be at the upper end of the expected ounces.
The mob that did the first resource calculation obviously had no idea. Papillon's geologists have done the right thing and interpreted it correctly and taken the hit now instead of mining something and then telling us it isn't there. It's the only way to do it, to be honest. Snowden's estimate is very conservative though. A slash of the topcut from 80g/t to 20 and 25g/t is pretty dramatic. More narrow, discrete zones should have given a HIGHER grade estimate at less tonnes, not lower grade!!!!
But the announcement is pathetic and not enough explanation has gone into it.
Stuart Hall should give his explanation as Technical Director as to why this disaster has happened. His reputation will be forever tainted by this now.
The last diagram with the wireframes is absolutely pathetic and tells us nothing.
Diamond Alan is a hard working MD and must feel incredibly embarassed by this but he's been duped by his technical people telling him he's got a 3 - 4g/t orebody to promote.
I could see the writing on the wall and was why I posted with regards to the grade a week or two ago. Too many people were expecting a high grade announcement (fair enough too, management were overpromoting the grade) but from the results being reported I could see this was clearly not going to be the case.
To all of you who were gutted we weren't involved in the capital raising at 55c, now's your time to buy...
PIR Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
