RE: VL New Resource Estimate ProjectionI forgot to include the impact of cut-off chnages on tonnage and grade......these are given below..
Category Cut-off Tonnes Gold (g/t) grade (g/t)
Indicated 1.0 23,011,100 3.32
Indicated 2.0 14,166,900 4.46
Indicated 3.0 8,211,700 5.92
Indicated 4.0 5,261,000 7.30
Note that tonnage increased about 4 fold and the grade decreased by a factor of just about 2.1 , when the cut-off was changed from 4 gms to 1 gms.
For VL, at a 5 gm cutoff, tonnage was 1.4 million tons at an average grade of 10.5 gm/ton resulting in 443,000 oz.
Linear prorata ( 1.75 times tonnage for each gm of cutoff ) would suggest that ,had the 2005 cutoff been 1 gm/ton ,,the tonnage would have been about 9-10 million tons and the average grade would have been no worse than the 3.32 gms/ton as provided in this example.
That grade and tonnage would then result in the 43-101 being about 1 million oz ( 9.5 m X3.32 / 31 ) , instead of the 443,000 oz.
Add to that the added tonnage at a cut-off of 0.5 gms and then add the areal expansion consequential to the subsequent drilling,and one can easily see that VL.s new 43-101 is going to be significantly above 1 million oz and perhaps also above 1.5 million oz.
Open pit gold mines have grades that are generally below 1.5gms/ton.
Based on assays and the above exemplar, it does seem that the average grade at VL for the open pit model will be 2 gms/ton or higher.
If we only had an aggressive IR rep, this one would now be well above $1.