Ann: Integration Update , page-29

"From pre merger detailed resource statement for Mt Monger (available on pg 5 of ann 13 Dec 2012). Daisy M has 618koz at 12g/t. Haoma (excluding Haoma west) has 451koz at 11.9g/t
That’s over 5 years worth of ore (at 200koz/yr) at a resource grade of 12g/t."


Chuck, it's useful to review and compare resource grade and head grades through the Lakewood plant from underground ore sources at Mt Monger... the grades you write are for the narrow veins only but there is a mining dilution factor on top of that to account for by the time the ore is processed.

SLR has disclosed all of the underground head grades in their quarterly production reports to compare with grades in the resource statement. The dilution is very significant and that 5 yr life you mention would actually be nearer to 10 years (lower head grade, higher throughput).

And it's the same with the Cock Eyed Bob underground ore. Integra was mining at too high a cut-off grade and, according to Les when I spoke to him last year, SLR will reduce that from 3 gpt to 2 gpt (round numbers). So the actual grade going through the mill will be lower than the grade we actually see in the resource statement.