CDV 0.00% $1.08 cardinal resources limited

The Finance guys care not how the equity comes along (CR, JV,...

  1. 2ic
    5,493 Posts.
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    The Finance guys care not how the equity comes along (CR, JV, post TO with new owner etc) just so long as there is enough owner's skin in the game to soften any blow to the future mines profitability or cost blow outs (losses always go to owner's equity before debt equity).

    Finance guys do however care very much about the risks of a project they are lending against. Resource drilling is relatively wide spaced and even in the Measured category is still just a statistically supported average based on geological interpretation and confidence. The tighter the drill spacing the more data, the more facts and the less interpretation involved. So the geo is pretty confident the ore will be where his model says and at the grades his model says but bankers are notoriously risk adverse, they will be suspicious the model might be wrong. Tighten up the pattern to 25 x 25 over the starter pit and test the results against the Resource model. If the 25 x 25 pattern results match very closely the interpreted resource model block numbers, well you have effectively tested the interpretation and proved it is correct. Given the very large mining blocks and wide ore lodes, this 25 x 25 drill pattern is very useful for grade control when it comes to mining, basically they have just brought forward grade control drilling.

    This drilling adds nothing to the real value or Oz in the pit probably, only the guys running statistical variation on the 25 x 25 drill assays against the resource model can tell if the tighter pattern is showing a material over or under call on grade and Oz against the resource?


 
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