RE:RE:Great article in this months CIM magazineHi Allenbow.
Reserves are a term required by the SEC in the US as part of a feasibility study and only includes the Proven and Probable quantities of ore. Resources are a CIM term and includes Measured, Indicated and Inferred quantities. The actual definition for a reserve is ore that can be recovered and processed at a profit. it does not mean that the profit will be such that capital could be recovered at a rate to justify investment in the mining infrastructure but based upon the pricing assumptions made-the mine should be able to have a positive cash flow. At Brucejack the reserve number is one that is likely to grow with the drilling completed this year, but it will not be earth shattering. They have tightened up the spacing on the first few years of ore that will be the first to be mined. The numbes that I am looking for is when they add the zones to the west, east and at depth in the Valley of the Kings and then later when they get over towards the Flow Dome zone which is projected to be an extention of the VOK a kilometer to the east at depth. The proof of this theory requires an extensive and expensive drifting and drilling program that is not necessary at this time but when it is done has the possibility of providing the tonnage necessary to expand te entire mining operation for an extended period of time.