Ann: GRR - Quarterly Report for 3 months ended 30 September 2018, page-32

Thanks @suti1

I think it’s an important question for anyone holding this stock for the longer term, that is, what is the size of their remaining open pit resources/reserves?

The quarterly report is starting to address the underground feasibilty of the north pit deposit and central pit where I assume they are also looking at the UG feasibilty, so I assume this is signalling that the open pit ore is coming to an end soon.

These types of UG developments require a bulk UG mining technique like sub level cave mining which itself requires pretty tight rock pressure conditions between footwall, hangingwall and ore zone to even become feasible. There is no guarantee that the deposit can be feasibly mined UG until all the studies have been done. I see they are allocating $15 million to building an exploration decline alongside the North pit and $0.75 million on geotechnical drilling around the central pit.

So the question still remains to be answered. How big are the company’s open pitable reserves. That is what will determine the value proposition going forward as a large proportion of the cash the company holds could easily be used to develop the UG operations, if it proves feasible. If it is not feasible then the remaining open pit resources/reserves determine the remaining mine life of the operation and the potential balance of any cashflow the operation will bring after closing costs. You’ve only got to look at RSG’s Syama UG sub level cave mine to know these types of developments can cost upwards of $100 million.

Does anyone have the answer? or is this another misgiving of this company’s disclosure practices?

Eshmun