who else has these grades?, page-8

One has to be cautious with underground vein mines. These veins can be difficult to trace and are difficult to convert to reserve ounces and thus have a lesser impact on NPV and stock valuations. Analysts prefer open cuts where reserve ounces can be established.

There is a practice called "stretching" to elongate veins into larger intersections by adding a number of metres of low grade intersection adjacent to to the high grade.

Hole GUD1008 is a narrow vein of 0.5 metres at 202 g/t. It is also reported as 2.1 metres at 42g/t. Well an average of the rich vein across the intersection would be [(0.5*202)/2.1] = 48g/t. So there is less gold in 2.1 metres than 0.5 metres [probably rounding errors in intersection lengths].

Hole GUD1060 has 4.1 metres at 152 g/t. It is also reported as 6.9 metres at 92 g/t. An average of the rich vein across the intersection would be [(4.1*152)/6.9] = 90g/t . There is little gold in the additional 2.8 metres.

Underground mining has substantially higher costs and unpredictability than open cuts. LEG has a market cap of around $45 million and has to be compared to DEG in the alternative category.

TRY is another but requires more results from Lord Nelson + Brazil to validate price.