Explor Resources Inc. (fka EXSFF)

[gharma]

Somehow, despite inflation, the cost of underground has been reduced from $75/tonne to $70/tonne to mine, and from $12/tonne to $10/tonne to process ! My understanding is that all costs have gone up, but the values used in the original and the prior (June '12) estimates were apparently too high.

IMO much of the reduced OZ is because of two changes in the model, hidden in note 4

(4) Grade capping from none to 20 g/t was utilized on raw assays for the mineralized domains. Inverse distance cubed (1/d3) was
utilized for grade interpolation and was based on 1m composites within a 5m long x 2.5m wide x 5m high block model.

Previous grade capping was from none to 35 g/t, and the block size is now 1/4th of the volume of the blocks in the prior two estimates which used 10m long x 5m wide x 5m h blocks. The smaller block size was probably needed all along given the small size of most vein intercepts, imo, and results in more (but each smaller) blocks being extrapolated at lower and/or as low to no AU content.

If one looks at this estimate for underground using the prior update's 2.0 cut, then one gets
208,830 oz indicated at 4.32 g/t
511,013 oz inferred at 3.36 g/t
719,843 total
but that prior update (June '12) showed at the 2.0 cut it used
212,856 oz indicated at 4.83 g/t
814,798 oz inferred at 3.56 g/t
1,027,654 total
- 719,843
307,811 oz less at same 2.0 g/t cut this "underground" compared to June '11 all
(note: significantly less inferred, due to note 4 changes imo, and the block size changes would be expected to mostly impact inferred much more than indicated, which is how these compare)

But today's update shows only 260,000 oz total in "pit" at 0.25 g/t cut so the lost gold didn't all travel there with reclassification of drill results to "pit"

It certainly appears like one year's worth of drill found net of no new gold that could be quantified (not really a surprise if you go back and look as the reported intercepts of a few g/t +/- over a few meters +/-)

This appears to be a time for believers to take a gamble on KC as this is not going to keep the pps afloat.

JMO