Banyan Gold Corp V.BYN

Asking for clarification on the calculations

[mattbigham]

Question:
A gold miner has 9.25 m oz of gold using $2050.00 USD gold as a cutoff. How many ounces of gold will they have when they use $3000 USD gold in this equation

Answer:
The exact number of ounces depends on the specific geology of the mine (the "grade-tonnage curve"). For many large deposits, a 46% increase in the gold price used for the cutoff could potentially increase the reported ounces by 20% to 50% or more. 

If Banyan now have 9.25 m oz in the revised MRE using the $2,050 gold cutoff and we increase that by:

20% = 11.1 million oz Au
30% = 12.025 million oz Au
40% = 12.95 million oz 
50% =  13.875 million oz

Banyan may only have 9 million oz discovered in this upcoming ,revised MRE so we adjust the totals down a bit. Looks like if BYN do use the $2,800 USD cutoff even a 20% increase should vault AurMac well over the ten million oz of gold mark.

If we use the lowest , base case scenario Tara said she will use of $2800 gold and only  9.0 million oz of gold discovered :

At a $2,800 USD gold price cutoff, the miner will likely have between 10.8 million and 13.5 million ounces.

This range reflects a 20% to 50% increase over the original 9.0 million ounces.

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• At $2,050 Gold: A certain grade (e.g., 0.50 g/t) is required to break even.
• At $3,000 Gold: The denominator in the equation increases by ~46%. This forces the cutoff grade to drop (to approximately 0.34 g/t in this example). 

 

Impact on Total Ounces

Because gold deposits usually have a "log-normal" distribution—meaning there is far more low-grade rock than high-grade rock—even a small drop in the cutoff grade can lead to a disproportionately large increase in total ounces. 

1. Lower Cutoff Grade: More tons of rock now qualify as "ore" instead of "waste".
2. Expanded Pit/Mine Life: Higher prices justify digging deeper or wider, capturing ounces that were previously physically or economically out of reach.
3. Increased Ounces: The total reported resource increases without any new drilling, simply by changing the economic assumptions in the model.