way linggo reserves, page-2

Unlike open pit mining, narrow vein mining is expensive to drill out to JORC standards. KRM , like MML, have decided to use its exploration capital
in UG mining following the narrow veins rather than spend money
on expensive and difficult JORC drilling.

Way Linngo and Talang Santo are narrow vein gold mines and KRM have
acquired some of the best in the business including a mine manager ex
MML and of course Mr Phillips who was a foundation prospector/miner/
shareholder of MML

KRM has rich (12g/t + Silver) narrow veins and the most economic way of
mining is to simply follow the veins UG rather than costly costly
JORC drilling. Its all about economics rather than science.

This is why KRM has to only 400-500 tons/day while lower grade
JORC'ed open pit mines have to process 10 times that for similar
gold revenue.

If you study the evolution of MML, then you will see KRM's rationale.

Cheers
Moorookamick