69% increase on silver deposit, page-6

A fantastic good news ASX headline "Alcyone delivers 69% Increase in Twin Hills Silver Resource"

So I digged a little deeper.

Lower the minimum cut-off grade to just 26.5g/t silver and that is pretty much how you get a 69% increase in resources to 9.5Mt @ 53.8g/t silver for 16.4 million ounces of contained silver.

In gold equivalent terms using today's current ratio of 52 ounces of silver equals one ounce of gold the upgraded resource is equivalent to 9.5Mt @ 1.03 g/t gold for 315,000 ounces of contained gold.

Now a 1.03 g/t gold resource of just 315,000 ounces is pretty low grade stuff imo. How many gold juniors are trading at a $100 million market cap with a resource similar to that?

I also couldn't help noticing that "The reserves and mine plan will now be reviewed with a likely increase in both reserves and mine life based on a forecast production rate of 1.2-1.5Moz per annum."

With a significantly lower grade I think it is also fair to assume that mining cash costs might also increase.

Does anyone know what has happened to the 1.5Moz - 2Moz annual silver production that was mentioned early last year when I invested? It seems to have dropped to "a forecast production rate of 1.2-1.5Moz per annum."

I see this ASX announcement has led to a kick in the AYN share price. Good luck to the purchasers and good luck to all. Just wishing well for the buyers and hoping they don't find some AYN shareholders taking advantage of this "Alcyone delivers 69% Increase in Twin Hills Silver Resource" ASX news headline to sell their shares into this news based buying.