Scorpio Gold Corp. (SRCRF)

[MUDbone1]

New satellite resource out.

Mineral Resource Estimate on the Satellite Deposits


What stands out to me is :

"Within Telesto's resource block model there is approximately an additional 1.5 million tons of mineralized material outside the floating cone economics that is above a cutoff grade of 0.02 opt gold. The areal extent of this mineralization is presented in a plan section of the resource model wireframes available at: View Map. Cross-section views of the mineralized wireframe envelopes that extend or lie outside of the pit shells is available at: View Cross-Sections. With additional drilling; some or all of these areas could potentially be added to the mineral resource estimate after applying floating cone economics."


It looks like there is much more gold not included in the resource calculation than is included. I have never seen a resource calculated this way. Why are they using floating cones for a resource calculation? Isn't something like that used only when calculating reserves? If they didn't use floating cones the resource would have been well over 100,000 ounces.

Anyone have thoughts on this?