It’s not the cruel reality of a C$230m market cap company relying on a 100k oz resource to justify its valuation, either. It’s this:
2015 Resource Estimate
The 2015 PEA estimated mineral resources totaling 152,000 Indicated ounces of gold and 787,000 Inferred ounces of gold. This updated mineral resource estimate totals 177,800 Measured and Indicated ounces and 100,900 Inferred ounces of gold. Comparing the 2015 and 2020 models, it was evident that the general location of the 2015 mineralized zone was modeled appropriately with respect to locations of the principal domains albeit generous in thickness and extrapolation. Several 2015-modeled solids depicting vein mineralization have since been drilled showing that mineralization does not exist where modeled in 2015. Another reason for the difference is that MDA took a more conservative approach to modeling extrapolations and projections from drill data, where no drilling was done since 2013. The 2020 volume of modeled veins and veins-plus-halo were 89% and 46% lower, respectively, compared to the 2015 single-domain volumes.
An important difference between the 2015 and 2020 models is the interpretations of the mineralization. The vein and vein zones (both averaging >15 g/t Au) have distinct, sharp-bounded contacts usually within low-grade halos. By modeling these veins and halos as one in 2015, the extreme high-grades in the vein were spread out into the larger volume of the halo in the estimate, thereby over-estimating metal, albeit at lower grades than exist in the vein and vein zones.
That is the most wonderful and construed way of saying “the artisanals mined us out” I’ve ever seen. Wonderful stuff.