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Why does everyone go on about MRE. We are nowhere near finding out the reserves here. THE CEO states we can have an mre for a quarter of the find. Why can't we all wait till they have a better idea of the mine. GLA. By the way I'm sat on my hands till buyout times. Once again thanks for all your research.
@CB - I think that MRE is just a line in the sand, and we know this is only going to be based on the SE sulphide zone and the surrounding breccia.
Newcrest need to do this to enable them to continue to develop the PFS - it's will allow them to select a mining method and then develop this more fully as they progress. It like a series of hoops that they have to jump through.
Thank you for bringing, yet again, some well needed rationality into the ongoing MRE discussions!
I continue to say that some people will be disappointed, probably solely because they just don't understand & appreciate how this works..It's INITIAL, nothing more!
GLA!
It's a bit heavy reading but it explains the differences between the various stages of reporting in here.
The initial scoping study with the inferred mineral (maiden) resource estimate.
What needs to be done to convert this from resource to reserves and the milestones for PFS and DFS.
http://www.jorc.org/docs/JORC_code_2012.pdf
ATB - Paddy
It has been said by at least one other poster before but worth mentioning again that the all important IIs will understand the scope of the MRE and hopefully any internal investment shackles will be removed. They hold the serious money.
ATB
You'll need an accountant to confirm, but I believe that an MRE (or some sort of officially recognised evidence of the mineral reserves) will allow us (and NCM) to recognise the asset on balance sheet. If so, this will increase our company assets.
@WelshFalcon - I'm not sure about whether that is true or not - here are the definitions of the 3 categories of inferred, indicated & measured resources in the JORC code. It's worth noting that NCM have stated this will just be the "Inferred Resource" that we get at MRE.
21. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade
(or quality) are estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is
based on exploration, sampling and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
22. An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics are estimated with sufficient confidence
to allow the application of Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable exploration, sampling and
testing gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity
between points of observation where data and samples are gathered.
An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured
Mineral Resource and may only be converted to a Probable Ore Reserve.
23. A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape, and physical characteristics are estimated with confidence sufficient to
allow the application of Modifying Factors to support detailed mine planning and final evaluation
of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable exploration, sampling and testing
gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufficient to confirm geological and grade (or quality) continuity between
points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Ore
Reserve or under certain circumstances to a Probable Ore Reserve.
There are then other processes to follow to convert these "resources" into "reserves" - it's a complic
Ah, Ok.....
A long ladder with many steps! It looks like a valuation system designed by committee.
I'll get me coat.
Paddy, I am of the mind that we could have a measured mineral resource estimate for the area they are going to submit .. do you agree ?
I guess it's there to provide the small investors like you and I some protection from companies just releasing any sort of guff in RNS's. At least we know that NCM will follow the JORC reporting code to the letter of the law and even though there are multiple rungs to climb we can be assured that whatever they put out will be correct.
Cheers - Paddy
Lenz - no chance IMO mate, this is from the Newcrest report yesterday.
"At Havieron, exploration activities have focused on an infill drilling program to support the estimation of an initial
Inferred Mineral Resource from the South East Crescent and adjacent breccia, expected in the December 2020
quarter"
It will be an inferred MRE. They need to complete the PFS in order to convert to Measured IMO.
ATB - Paddy
I can’t see them being too far behind with the inferred minerals resource, if they want to go mining though !
Sorry that should be indicated !
So I presume we won't see a noticeable rise until the MRE releases? I guess we'll float around 23 until then
Mirik DYOR, drill news can drop any time from 100% owned drill site.GLA
@ Paddygall - Hi Paddy. As usual a brilliantly informed exposition on JORC measurement, and certainly one that I am competent to question.
However, might I ask that if NCM are already proceeding at pace to mine, having already applied for and received most of the requisite permits / permissions etc, then with the detailed knowledge that they have already accumulated from the hundreds of drill cores they have obtained plus their aero surveys etc., then they are effectively moving into indicated resources rather than inferred.
Or are they just hurtling along into mining ,because every time they send a drill down, anywhere within 5 /10 kilometres of Havieron, they are hitting solid ,football size chunks of au , 100 gr to 1000 oz per ton, and they ( like all of us LTH's ) have absolutely not one single doubt whatsoever what is below ground, and they have just run out of suitably decriptive words to it.
My perceptive but quite ill educated mining brain tells me we are miles past the inferred measurement , or am I just being opportunistically optimistic.
Digger Tigger.
I did mean NOT competent to question.
Tig
Indicated Mineral Resource
The term "Indicated Mineral Resource" refers to that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
Hi tigg - I believe it's the 'spacing' that is the reason for inferred at the moment. A lot more drilling required to move to indicated. I know of another project that has drilled a 50 x 50 grid for their inferred MRE but is now drilling a 25 x 25 grid to infill and move to indicted. Its all about the gaps!!
Hi Tigger,
I'm by no means an expert on the JORC code but have taken advice from more learned people in the code than I and I'm led to believe that Newcrest will need to have completed a bulk sampling program to determine the metallurgy will work okay at the Telfer processing plant before they can complete their PFS and move onto the DFS.
Therein lies the urgency in starting the decline to allow them access to the ore in sufficient quantities for them to satisfactorily complete their DFS and due diligence. The fact that Sandeep has stated the end of 2021 for delivery for the PFS leads me to believe that they are targeting to be in the ore by the end of the third quarter next year to allow them time to mine and extract the ore and complete their studies and deliver the afore-mentioned PFS.
That's my understanding anyway - the great news now is GH has confirmed they should continue drilling the be-jesus out of the "other" 3 zones all the way through next year - so the newsflow will be even greater right through next year.
Cheers - Paddy
@ Stebol..... " it is all about the GAPS " - do you mean the g a p s in my recently acquired mining knowledge. If so, you would be right.
Tig
If the quality of educative posting on this board continues as it appears to be now doing, I will immediately cancel my annual subscription to "" The Fools Guide To Easy Gold Mining "", and I will then be able to suscribe to "" How To Grow Bigger and Better Tomatoes in Lockdown ""
Tig
Tig - abridged version is of course "Fool's Gold"!