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1.1¢ pioneer resources limited

Hi Dips, thanks for expressing it so clearly, yes that's my...

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9,332 Posts.

194

17/09/18

12:43

Post #: 35645141
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Originally posted by Dipsomania ↑

From what I have read they have a JORC Mineral Resource Estimate....10,500t at around 16%.

To achieve a JORC Resource there needs to be a "reasonable prospects for eventual economic extraction". That term would usually refer to a simple understanding of an extraction method and a guide as to the likely price one may achieve. A Mineral Resource is divided in increased understanding from an Inferred Resource to an Indicated Resource and finally a Measured Resource.

The term you are looking for is an Ore Reserve. An Ore Reserve is the portion of an Indicated or Measured Mineral Resource Estimate that is economically mineable and based on the assumptions in a feasibility study. It needs to allow for dilution etc etc.

To have a JORC Ore Reserve there needs to be at least a pre-feasibility study (PFS), a company can not announce any financials for any studies that are of a lower level than a PFS, for example a scoping study.

Under ASIC Information Sheet 214 regarding forward looking statements and production targets / guidelines a company MUST have an Ore Reserve and there be reasonable grounds for the company to be able to fund (either internally or externally) the extraction of the Ore.

PIO has not published an Ore Reserve so therefore can not announce any production targets or financials on the project.

As one poster mentioned it is likely that there is a non disclosure clause in the Cabot offtake agreement that prohibits PIO announcing the value of the Pollucite and the terms of the offtake agreement....hence no value per tonne can be announced by PIO

Information Sheet 214 (and both ASIC and ASX) would ask some serious questions if any financials or a production target were published especially as there is no announced PFS.

It appears that PIO has announced as much information as they can under the listing rules, corps law and the Cabot offtake agreement.

I am sure that David and the rest of the board would love to sing from the roof tops the details of the agreement and the financial returns they are being restricted.

Cheers

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Hi Dips, thanks for expressing it so clearly, yes that's my understanding on why they can't announce any of those forward looking statements re revenues, ebit etc that some seem keen on.

Anyways, I look forward to the Actuals being reported.

Thanks

PIO Price at posting: 1.9¢ Sentiment: Hold Disclosure: Held
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Hi Dips, thanks for expressing it so clearly, yes that's my...

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