I suppose that some inferred can go through to reserves if there has been sufficient work done on it.
Your post suggests that my lower estimate is probably a maximum. I must admit I didn’t think to deeply about it when throwing the numbers around. Remember the drilling density is not a fixed quantity, the geological classification depends on the confidence of the estimator. For example if it is pretty clear that the ore body isn’t faulted away/displaced between any two points and all other indicators show that the grade and volume continuity is predictable over the existing drill density then the drilling density might need not be filled in as densely as in a zone where a fault or other structural complication makes prediction/extrapolation harder.
The company increased its measured and indicated resources by 11% to 2.5Moz in August 2018 as you say but they haven’t had a reserve update since November 2016 as far as I can see. That’s more than 2 years in which a lot of work will have been going on.
Let’s put a 1.8Moz reserve target out there before Christmas and see how close they get. Even if we come in between 1.6Moz and 1.8Moz, I can live with that. Esh
DCN Price at posting:
$2.09 Sentiment: Buy Disclosure: Held
