I hear you Somchai. I have no doubts in my mind that eventually we will get to that 10 million ounces. Putting those ounces on a 43-101 in the category of proven and adding them to known reserves is very expensive as we have witnessed over the last 3 years. Our last report only had 812,000 M&I with 1.8 Million inferred. This translated to reserves of only 767,000 onces.
Key assumptions for conversion of measured and indicated resources to proven and probable reserves:
1. Resource tonnage factor 11.4 cubic feet per ton (equivalent to an average specific gravity of 2.8)
2. Minimum mining width 5 feet horizontal.
3. Mill Call Factor 95%
4. Mill Gold Recovery 93%
5. Gold price US$1200, Canadian$1260 at 1.05 exchange rate.
6. External cut-off grade of 0.13 ounces per ton.
7. Internal cut-off grade 0.10 ounces per ton.
The 3 million number I am "hoping" for would be included in our reserves. That is what I believe most of the drilling last year was all about. I also do not expect our next 43-101 to include massive amounts of drill core below the 16 level, so your guess is as good as mine when we start talking M&I and Inferred. However as we saw with the first report that was later down graded, it doesn't take a ton of drilling to get inferred ounces. It would be nice to see a huge number in the report but realistically IMHO it will be a couple more years before we see anything north of 10 million ounces.
