The estimate of the reserve will be based upon the current well excluding Leadville. this should prove the commerciality of the venture. Once this exercise has been undertaken then they will proceed to well 2 whereby they will attempt to add Leadville to the defined reserve along with any other information they have.
Definition of a reserve is an ongoing exercise - I worked in the mining game for many years and the reserve was adjusted regularly based upon latest information to date. Just because they drill more wells does not mean the reserve will automatically go up - in numerous cases the reserve may decrease but in GDN case unlikely.
Bounty gold mine was a great example of a define reserve being smashed whereas White Devil in Tennant Creek doubled their reserve with further drilling.
the announcements to date point to a reserve being defined that will be very conservative - the second well may deliver the bonanza
Wally
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
