Gold sells into a highly liquid market so everybody's 9999 gold sells for exactly the same amount at any given point in time. In such cases CIMM guidelines suggest that you use a discount rate that is essentialy the bank of canada rate plus 3% or higer if there are abnormal risks. In industrial minerals that are not being sold by established contract prices the guideline is BOC rate +8-10% or higher. Similarly the nature of mining gold is well understood whereas graphite mining isn't at this time so you get a larger contingency (prepare for the unknown and smile if they don't happen). These difference in discount rates and contingencies disappear as the deposit goes forward to production and the project is further derisked at the PFS and BFS stages if we get there. Remember that the P in PEA stands for preliminary and things will change as more information becomes available.

At the end of the day its much better to start with a rock solid, conservative play by the rules PEA then a piece of inflated bull. The numbers will be refined and improved and whoever is looking at us will see the same thing. We want to make sure that any company that is looking at us as an acquisition doesn't see any flags other than a checkered flag off in the distance that they need to get to before the other guys.

... Been There