RE:Approach to new MRE? 95BC? T Dart?I think Taylor did a good job of answering your query from a technical valuation perspective. I would say they can do a resource model that includes all the ounces down to their cutoff, whatever they decide. In this case it is 0.7 gpt. In the PFS, they will decide on a mine plan based on the economics of the day. What they are saying in their review is to make things economical at this stage, they need to increase the grade and postpone the heap leach. The heap leach required them to process 9000tpd, the same amount as for the mill procees. Not doing that will result in significant operational and Capitol savings. The more rigorous block modelling will possibly allow them to eliminate lower grade blocks, or identify higher grade blocks that allow them to decrease the required stripping or the depth they need to go to. This will mean lower grade blocks will be lost but if it is not economical, it is not ore. If the price of gold goes down dramatically, they will have to revise the plan and if it goes to $2000 per ounce, you can rest assured the heap leach will be started up and we will see a few more 1000 to 2000m holes drilled around the property to see if there is an underground resource.
By the time the mill is constructed, it may be the case that Sprite will be the first pit mined due to its proximity, even if it is not included at this time. The amount of ounces lost may be gained many times over given the prospective strike length of the Sprite area and Marathons success rate. I know I was concerned by the potential of high grading but I think the PR was poorly worded in that respect.