LAF lafayette mining limited

laf query: minelife vs reserves

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    I have a small amount of LAF shares, with my main exposure being through my holding in Lion Selection Group. One thing that is confusing me, probably because my research on it has been minimal (hence small holding), is the estimated mine life of 6 years.

    The financing announcement stated that the mine life will be 6 years producing annually 10000t of copper, 14000t of zinc, 50000oz of gold and 590000oz silver.

    Now either the recovery rate is extremely low or im missing something here because the RESERVES statement on their website states reserves of 480000oz gold, 5.35million oz of silver, 71000t copper and 123000t zinc (Hixbar deposit still to be added).

    now 6 years at the above production rates will come up WELL SHORT of the reserves.

    Anyone more knowledgeable on this company want to highlight where i've gone wrong here, ie is it the recovery rate or what?

    thanks

    Cdchi1
 
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Currently unlisted public company.

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