This is a TIR problem not an WMR problem. It reflects a bad...

This is a TIR problem not an WMR problem. It reflects a bad initial set up by TIR in this area. But the new procedures will prevent TIR from getting further unexpected surprises in the future.

New TIR sampling procedures do not change the nature of the ore.The market is now questioning how much of the original reserve will be out of spec. If this ore is coming from the oxide transitional zone at the top of the pit then there could be more out of spec ore to come. There are two implications from further loss of ore 1) short term cash flow problems and 2) loss of ore reserves.

Yes current damaged share price looks like a good buying opportunity but the market is still wondering how much out of spec ore will be in the pit reserves.

The question to ask the company is: how thoroughly was oxide sulphides considered in the ore reserve? For an open pit mine this is an obvious and straightforward issue during feasibilities and should have been sampled for and modelled in detail. Threfore I would think we are seeing a short/medium term glitch.

But if TIR price keeps falling on large volume it would pay to sit and watch and buy on first sign of recovery.

acturtle