Taechang Mine - Low & High Targets at Gubong Mine, page-21

The SP action has been frustrating as hell @TrendTracker. When the SP was in the 40s, very large offers were set between 45-50, capping price and then SP churned lower until we've managed to be stuck in the mud at 26-33 cents since. The market hasn't interpreted any news very positively since then, yet SAU has been transformed fundamentally. The Die Hards around here figure it's only got to be a matter of time.

@Mr Kodal - " It will not be necessary to do infill or RC drilling to upgrade to JORC. It is possible if the sampling technique is done correctly inside the mine that we can upgrade to JORC without the need for drilling another cost saving. The goal is to advance the project and bring about production in a way that limits any future dilution for shareholders. This is another distinction from a pure exploration project where dilution is a regular event"

My interpretation of a bankable feasibility study is that it a least needs JORC reserves (preferably proven). Then there's metallurgical recovery, environmental, social impacts etc. I would have thought that "correct sampling technique" could be used to upgrade the ready to mine stopes and other easily mined opportunities - into at least the "Probable Reserve" category. There's no doubt that face sampling could again add to the categories of inferred, measured and indicated resources, however, these are not considered in a BFS. They generally have to be proven up by drilling (and most UG drilling is diamond ) and this takes time.

At the end of the day - I have 99% certainty that Gubong will be in production by early 2019. A BFS is a BFS and production is production. My thinking is the only way to achieve this so quickly is aiming for Modest BFS and Modest production. Ultimately there'll be nothing modest about Gubong and Teachang though - that's why I'm posting about the need for patience and realistic expectations to begin with.

Where I came up with the 5 MOz production figure is a pure guess of mine. Charles Barclay said back earlier in the year he believed (London Investors Show 2017)  the mine was as large as Fiji's Vatakoula (both he and Colin managed) mine ie 8Moz production. The 400K Oz official number just doesn't gel with the actuality of the Mine's vast size, purported high grade and even the fact that it employed 22000 workers at one stage. I believe that 5MOz is actually a low ball, conservative estimate, based on what Charles publicly said - however anyone is free to believe the 400K Oz, second biggest mine if they like. It's stated as my guess after all. The guess was only to say that the tailings dam could have a million ounces of Au left in there. It could be double that amount or it could be a quarter of it - who knows, but if Charles and Colin are correct in thinking the mine could have produced many millions of ounces (perhaps 10 or 20 times the official production number) , the tailing facility will have 10-2o times previous estimates. That's all I was trying to point out.