BL Known & Unknown Reserves Cut Off Grade 3.43g – This is the cut off grade used in the 2005 Innov-Explo Report and it is also the cut off grade used in the Pre Feasibility.
- The POG was $444 in 2005 (according to Kitco historic gold price table)
- The cash cost of gold would therefore have had to rise by a multiple of 3.87 ($1720/$444) for this cut off grade to still be applicable to the current gold price.
- The 90% ore recovery rate used in the 2005 NI 43-101 reserves has now increased to 97.58% achieved in the bulk sample.
If follows therefore that 2005 reserves, which are based on the latest NI 43-101 which used the 2005 cut off and recovery rates, must be manifestly under reported.
In the light of the extended underground drilling campaign in 2012 and some fairly wide ore widths, then it is possible that the Feasibility Reserves may exceed all previous expectations.
(Ref Stantec NI 43-101 Table S-2 Underground Mineral Reserves)
The results of the resource estimate were released in 2005, and recently validated with current gold price and cut off grade used in 2005.
The proven and probable reserves are based on a cut-off grade of 3.43 grams per tonne using a 90% ore recovery, and 10% dilution to a grade of 0 gpt.