LOM & Resources There has been a 66.6% increase in mine life from 3 years which was reported at the Pre Feasibility stage, to the now stated 5 years (ref Pascal Hamelin and references by directors in earlier reports). I expect that this relates to an increase in Measured & Indicated reserves, which was the basis for computing the mine life in the prefeasibility study.
If this M&I increase were to be extrapolated with Inferred Reserves then the current position would be as follows:-
| Resource Type | Pre Feasibility | 66% LOM Increase | Projected Reserves |
| Measured & Indicated ounces | 210,857 | 139,165 | 350,022 |
| Inferred ounces | 89,366 | 58,981 | 148,347 |
| Total | | | 498,369 |
It is likely that the above will be a minimum of total resources, since the extensive underground drill is likely to have extended Inferred Resources far more than the 66% increase of M&I needed for Pascal to project a 5 year mine life at the present time.
Source – 1.4.2011 Pre Feasibility
The Pre-Feasibility Study confirms a pre-tax IRR of 85% and generates over $96M of
free cash flow from the underground production of 200,000 oz over an initial 3 year mine
life with an average annual production targeted at 60,000 ounces of gold per year.
Source - Pascal Hamelin - 3rd October
La durée de vie de la mine est évaluée à cinq ans. M. Hamelin avoue que ce délai est court. «Ça donne pas beaucoup de temps de découvrir des nouvelles ressources, a-t-il admis. C’est pour ça qu’on a deux foreuses en action depuis 2011 qui sont là pour augmenter la ressource.» Une mise à jour à ce niveau devrait être annoncée d’ici la fin de 2012.