What we don't know is the potential for the PRB properties. The 43 101 was prepared and filled in 2005... we don't know if more drilling has been done, or if there is any effort even being done in that regard.
This document was worth the read, was it not.
What I took away from it is the lack of proven resources at that time... in a time frame of a much lower gold price.
The report specificlicly mentions that a change in mining methods is what has made Goldex viable, and since then a 50% increase in the gold price.
I don't know what potential the mined out shrink stope has for resources... or if there is potential below these claims.
Since we are only a net smelter benifactor we likely won't know much unless Agnico wishes to inform us..
We have a couple interesting points though... since the production will be @ 175,000 oz / year this is a relatively short time frame and I bet AEM is allready looking to expand the time horizon for this mine... Lets hope that include the PRB lands as well.
One more point has been mentioned by Dave P lately.. That being AEM test mined ( Bulk sampled) recently... Now if we only take the 43 101 ver batem this would indicate the final block had been removed... I doubt that was what was done.
I think that since this report was compiled a posible resource has been computed for similar methods to be used in the old workings... especially at the higher gold price, and new milling capacity currently processing large volume diluted ore....The mining method now intensionally dilutsthe ore with the lower grade removeing very large blocks of material.
We have a posability that is what this test Dave P indicated was about.
Long and short of this is, we have few defined 43 101 compliant resources on the property... we have developed mine infrastructure which may contain a resouce capible of being bulk mined along with the mine development plan filled in 2005.
Whats it worth.... looks like this would be worth about $ 30 million to PRB for every 1 million oz found on thos claims.
What would be interesting to calculate is the glogal tonage of the east and west blocks... then deduct from this using avg grade to compute the potential remaining oz on PRB claims using bulk tonage methods.... Too much work for this guy! I'll wait for AEM to provide some info.
2nd posability is the downward extension to the mined out area on PRB royalty claims.
