What’s happening at Tampia, page-466

Tangs,

1. 20k Oz for a reserve that is a lot less than half the EXU reserve. There are indeed scenarios where the haulage costs could mean halving a reserve or worse. Has been.

2. You are still failing to understand the basic issues.

You are also wrong about the resource estimates. Why are you doubling down on this? Can you tell me the difference between IDW, OK, IK and MIK methods? If not, just accept that I know more about it (because I do).

The parameters RMS used were slightly different, the modelling method was different, and the effect was that a lot more ore fell into the marginal zones (at the gold price used then). The RMS model effectively "smudged" the ore, changing the grade/tonnage curve. You can tell this by looking at the resource/cutoff variations, and knowing that is what IDW does. RMS also used higher cutoffs (higher costs). These are the main reasons why the resource numbers differed, and THIS is why the reserve differed so much more. If half of the oreblocks sit in the 0.3-0.9g/t zone instead of only 20% of them, for example, it is a huge difference in outcome. Cutoffs really DO matter, and 0.3g/t is very different to 0.9g/t (the haulage version in 2019).

From the RMS model, the image below shows the effect of a 10% change in bottom line costs. Can you see why changing the distribution of ore blocks and costs might make a big difference? Given the gold price is now 22% higher than the $1800 in this image and not just 10%, even without the difference in modelling, the cutoff drops, the tonnes mined should be higher, the effect of haulage costs greater, and the whole thing is a different beast. It should be much more like the EXU outcome than the RMS 2019 mining study. Edna May really should not be the better option now.

But the bottom line is that they don't release enough information for me (or anyone) to be able to judge if it makes sense. They release new feasibility results that seem unlikely, but I can't tell how they got them. Exactly the opposite of what the continuous disclosure rules are supposed to do.


PS. Sorry to bore the rest of you, but ........