Thoughts on ounces, value.The other day I ventured an estimate re drilling since the old resource report. I guessed it was something like 160 kilometers. I went back to the source (the Troilus website) and confirmed my guess was light. Actual drilling since the 2020 Prelim. Econ. Assmt. is 222,822 meters..
Further thoughts on ounces: the website still refers to the numbers we've been acquainted with for thee last few years - 4.96 million ounces Indicated and 3.15 million Inferred. The July presentation mentions what the new Teasibility Study will do:
consider open pit only
target 220,000 annual ounces
reflect 2.5% royalty buyback
AND target an inaugural reserve with 90% resource conversion from the PEA.
You will notice that there's no mention of establishing a reserve/resource in the 10 million ounce neighbourhood.
Actually, the 8 million ounce number from 2000 included some underground ounces. Total open pit resources were 4,21 million oz Indicated and 2.27 million Inferred. Grades were .8 grams/tonne and .7 g/t respectively.
I have no clear idea what the inaugural reserve number is going to be but I've learned from this company to think low. So start with 6.5 million ounces and take 90% conversion to reserves to get ballpark 5.85 million ounces in the proven and probable category. I think 90% conversion is high, but hey, they have drilled the snot outta this thing - over 300,000 meters total.
This post is long enuf. thoughts on value, later.