favourite pick, page-5

most jorc estimates will be wrong, some will overestimate and some will underestimate, it's accuracy depends on drilling density/resource model definition. Put more drills in and you'll have a more accurate jorc estimate, you'll also see increases/or decreases to grades and hence resource size as more holes are drilled. Example: drill 1 hits 5g/t, drill 2 which is spaced 10 metres away also hits 5g/t, when coming up with a resource estimate, one cannot assume continuity, and hence, the intervening space will be gradually interpreted being at 5g/t and reducing to 0g/t at the center [5g/t-->2.5-->0-->2.5-->5]; say you now put in drill 3, which is in the middle of drills 1&2 and hits 5g/t also, interpretation then follows 5g/t-->2.5-->5-->2.5-->5; and say you now put in drills 4&5, midway between 1&3 and 2&3, and drill 4&5 also hit 5g/t, then intepretation follows 5g/t-->5-->5-->5-->5. In other words you'd increase your reported jorc estimate grades from 2.5g/t-->3.75g/t-->5g/t, that's why you'll see higher confidence jorc categories as stating higher grades.
So, if you believe that the gold body is more continuous than what is assumed under lower confidence jorc categories, then you can expect to find more gold than is stated under jorc.
In the case of RMS, very few drills were put in, and hence Wattle Dam is a very poorly defined resource - because of that, it offers upside potential to jorc estimates. The results from those drill holes led management and investors alike to believe that they had an economically viable mine; subsequently the company went straight from a scoping study to mining. When the usual route for a gold explorer is to drill --> scoping study --> drill --> PFS --> drill --> BFS --> mine. As a consequence of minimal drilling and study, the jorc estimate and resource model for Wattle Dam is likely to be erroneous (as can be seen from recent announcements using actual results versus modelled results). The way I like to go about my investing, is to try to extrapolate future results from actual results obtained so far... and on that basis, I see A LOT MORE GOLD at wattle dam than implied by the jorc estimate. Look at the result from the latest milling, 23g/t and overall average of 31g/t versus 18g/t on the updated model - which is still wrong.

So dunnycan, if you have full confidence in the jorc, then sell (although honestly, the sp is low even when valuing RMS shares against the jorc estimate).