RE:RE:RE:ER New Resource Estimate As indicated in my initial post. Here are some additional comments following a more detailed reading of the NR, Sept 2017 Corporate Presentation, and listening the Conference Call on 11 Sept 2017 (see telephone link posted by another poster).
Conference Call Summary:
Opening remarks: Nothing new about Claude Lemasson opening remarks, just some basic information which can be found in the NR and Corp Presentation. The emphasis was on the increase in grades to over 6gpt at the expense of reduction in the RE. His 4 key areas: Quality, Robustness, Confidence and Growth. The first 3 would help derisking the project. The last one is for expansion potential. ER is continuing with the drillings of Clearwater with 2 drill rigs with the emphasis on the area around the HGS (see Corp Presentation, slide 16).
Callers: Three callers (analysts from various firms) asked several questions:
1. First caller: Conservatisms used in the new RE. If some conservative assumptions were relaxed the reduction would be much less and would be in the order of 10% (rather than 19%) but Lemasson said the number is not "official". In fact, the old estimate (1.6Mz for all categories) was done by a reputable consulting firm as well, and they are willing to put their names on the line as well. It's just, the company that wanted a more conservative set of assumptions to have "more confidence" in the number.
2. Second caller: Open pit plus UG later using ramp. During this discussion with a second caller, a few useful info came out. 3/4 of the oz comes from the top 400m (see Corp Pres slide 13 as a visual example); The minable oz is something like 2350 oz/m for the top 200m?; a 1500 tpd mill is probably suitable (to produce ~100,000 ozAu/year).
Expansion potential around hole 774: See Corp Pres slide 16.
3. Third caller: Continued on Expansion potential. Drilling is continuing (with 2 drill rigs) and results will be available in the next 6 months. Intended to include some new results in the PEA, and if results are enxouraging would procees with Feasibility Study.
Concluding remarks: Lemasson reminded audience about the other 2 projects:
- Eastmain mine project: Intend to upgrade the historical RE (0.3Moz) to NI-101 level, before year end.
- Elenore South 1/3 JV (next to SOI Cheechoo): progressing well.
Feel free to add/correct.
GH