next week, page-7

When will people understand that the COG for a resource calculation has no bearing on financial considerations? By applying financial constraints to an ore body before it is understood restricts possibilities. The COG is usually determined by statistics and represents a specific point in the grade distribution that has some relevance to the ore body.
A good example would be if the financial COG which was applied to Fimiston (around 5g/t) was applied to the resource model, the Super Pit concept would never have formed.
Resources are for the Geologist and are based on geostatistics, probabilities and natural distributions. They give as good a picture of the mineral deposit as possible based on the information at hand.
Reserves are for financial guys and engineers and they need, by their definition, to make money.
I agree that a lower COG used in calculating the resource will usually result in a lower conversion from Resource to Reserve but strongly believe that applying an arbitrary or financial COG that is not driven by the ore body is wrong and can blinker the potential of the deposit.