I understand what you are saying (you'd hope so too... I'm a...

  1. 277 Posts.
    I understand what you are saying (you'd hope so too... I'm a mining engineer qualified to sign of on JORC Reserve statements) and I support your view that an investor should have an understanding of technical announcements.

    That said I don't agree with how you are using that information:
    In your example you are correct - there appears to be a small high grade zone rather than a large low grade zone... however the contained gold is exactly the same.  So when it comes down to mining that resource there would be an economic decision as to whether to bulk mine it and accept the dilution or to selectively mine the higher grade only.  That decision would be based on achieving the lowest total overall costs (including mining, processing, rehab, etc).  Mining a smaller high grade resource, while more expensive per tonne than a large bulk resource, could lead to a smaller overall footprint, smaller processing plant, and lower total costs.

    In a nutshell each resource needs to be evaluated on its merits taking into account all options.  The stage where individual drill hole results are being the announced is at the beginning of the exploration programme and is still speculative pre-resource information and only announced to promote the company (this point is the important one to note).
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.