Tomato,
He has made a couple of great posts. The way I read his evaluation is that you get those numbers with the big stones out. He anticipates, conservatively $US160/tonne versus the $89/tonne that was in the release. This is in part because he predicts a higher grade than the 1.14 carats per tonne. I agree with him on this. He also, carefully states that the big stones are there, and therefore should not be discounted, and goes on to predict some big stones showing up. The key is, what value will the big stones be? If they are as good as the last batch, The average value per carat will increase to close to $US400 per carat and if the grade comes higher at 1.35 carats per tonne, we are going to end up with an implied value of about $US540/tonne or $CDN800/tonne. Bottom line, he is looking for surprises on the upside.
Should we be disapointed with AVERAGE values from the bulk coming in at $US160/tonne (equivilent to .5 ounce gold/tonne), and a 10 million tonne deposit(equivilent to >5 million ounces gold), I would expect a downward adjustment in price expectations, but to where, I'm not sure yet.
regards,
teevee
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