Mega Precious Metals Inc MPRXF

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE

[hrattle]

 

Curvature - what has gotten into you? A thoughtful articulate informed post - nice to see!

I agree with nearly everything you posted and always have done. My point was simply that companies do report resources at 0.1 gpt cut off - it is a promotional ploy and it seems you agree with this - nothing they report informs us of economics. 0.1gpt cut off for some mines could be economic if the optimal mine plan warranted mining low grade areas.

Cut offs get used in at least 3 ways: (1) to estimate resources (economics is not proven so a low cut off is a promotional tactic - it doesn't say anything about economics because resources are not economic reserves) (2) in 43-101 PEAs and BFS - here a cut off must show economics, needs to be conservative for funding and as you say 0.1 gpt today is highly unlikely - I have never seen one - but it doesn't determine economics, that comes from the average grade (3) in actual mine production - here cut offs are revised as the mine ages and as different mine areas are processed to optimise the economics. I've given you an example where at Yanacocha they might  use a 0.1 gpt cut off for a specific area simply because of the scale of the mine.

I had a quick look at NGM. The recent assays are provided UN-CUT, although they do refer to the cut off grade of 0.3 gpt several times. I am certain that any disappointment reflected in the shareprice has NOTHING to do with the cut off grade chosen and is simply because the actual un-cut grades and widths are the issue. (To be honest I think it looks promising - if it drops back below 20 cents.)