Gold reserves are based on the number of ounces in the Measured Category ( Proven ) and Indicated Category ( Probable ).
Together, these two grades comprise the Proven and Probable Reserves upon which the FS is based.
Inferred resources have limited sampling intensity and therefore lack the statistical estimation accuracy needed for inclusion in Reserves.
In the 2022 FS, 2P reserves amounted to 272,000 ounces.
In addition , there were just over 70,000 ounces of Inferred.
Given ultra high density grade control drilling now nearing completion, along with additional channel sampling data, almost all if not all of those 70,000 ounces of Inferred ounces will be converted to Reserves.
Depending on the algorithmic interpolation success of the 2022 FS, grade control could find new veins that were assumed to be non auriferous in the 2022 FS.
Channel sampling which was recently released shows that such vein discovery is highly probable .
In other words, within the optimized pit of 2022, Inferred Resources have a very high probability to be converted to gold reserves in the 2025 updated FS.
That is, 272,000 HD Reserves within the same optimized pit will increase to about 340,000 ounces , with signifucant probability that high density infill by grade control will find new vein stockworks excluded in the 2022 FS.
Of course, interim drilling in 2022 discovered three new zones around the HD pit .
These are extensional discoveries that in their strike lengths are quite large .
If grade control is extended to those new discoveries , there could be potentially large increases in gold reserves in the 2025 FS.
Of course, Orion and Orion North plus Stoger Reserves will be included as well ..more on this later
In Summary , with current knowledge , the 2022 optimized pit of HD will add at least 70,000 ounces of
Reserves once updated a few months from now.
Thats almost a 30% increase alone .
At current POG, the undiscounted recoverable 2P Reserves of the HD pit as defined in 2022 will increase to $1.2 Billion CAD.( 340,000 x $3600 cad per ounce ) ...an actual doubling in asset value.
This assumes no increase either by extensional new discoveries or infill drilling by grade control..
I shall update what Orion and Stoger will add later.....
We are very blessed..
AIMHO
GLTA