timbin the mine plan used two declines into the Westralia reef in order to access the highest grade ore from Allanson and Beresford upfront for better payback. the alternative was a decline midway between the highgrade. That is why they now talk about a decline midway as a potential development option since they sacrificed some lower grade material using the twin decline strategy
The initial stoping blocks of Allansons contain 60,000 tonnes at 9.5gpt and after that its around 7ish. So the first 100,000 tonnes of ore coming out of Allansons are very high grade and month to month production very volatile depending on access to these blocks and of course the grade which is bonanza and variable .
Many investors do not understand this although its all in previous company disclosure including the PFS
I have no issue with the company disclosure
DCN Price at posting:
$2.39 Sentiment: None Disclosure: Held