I am quite certain they do mean Reserve - the upcoming MRE for NN will be well in excess of 1m Oz maybe 1.3m Oz or higher (currently 952k Oz) with indicated of 1m Oz or 1.1m Oz (currently 700k Oz). A reserve of 1m+ Oz ( ie at least 1m Oz) would be quite special as it would mean 90% to 100% conversion of indicated to a reserve which I have never seen before (but that does not mean it has not happened for a deposit in the past). It was either Joelstar or speculator which also suggested a 1m Oz reserve for NN. I believe a reserve of 1m Oz is possible.
To date NN has a 90- 95% conversion of inferred to indicated where they have undertaken sufficiently close drilling. With NN ET of 1.6m to 1.9m Oz and Pepper looking good with potential of maybe 750k Oz, maybe a bit higher or lower, we maybe looking at a reserve of up to 2m Oz by the time they are in production. Then you add what maybe below WW, 4P and wider opportunities and the future looks very rosy for SPR shareholders.
From my perspective the reserve is more important than a good MRE update and it will likely have a positive SP impact if it’s 1m Oz or higher given that they is a lot more to come. It is rare to have such a high conversion of inferred resources to a reserve which means a lot more to come.
The BGL maiden reserve was 690k Oz and its current reserve is 1.34m Oz with indicated about 1.7m Oz with planned 10 year production of 1.85m Oz. That is SPR reserve will probably end up being significantly higher than BGL’s reserve with more drilling that SPR has planned from underground starting at 60km.
However, we need to wait for the reserve to confirm my view and others who are expecting a reserve of 1m+Oz.
SPR Price at posting:
$1.08 Sentiment: Hold Disclosure: Held
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