gold now $19 less peak price fml got last qtr, page-54

Dagostir,

Grab a drink-sorry longwinded-awake all night working,apologise for any typo's in advance.

The presentation was a reassurance that FML is growing and will sustainably produce NO LESS THAN 45 Koz back to back QTRS from here on in and has CRE turned-That's it.

Slide 4

Firstly,lets not get confused here,i can't claim higher production in the future,or make claims that represent managements future actions(just so there's no misrepresentation assumed here)I have never personally spoken to or met any of the company's management.I am based outside Australia.

I can in MY OPINION FORSEE HIGHER PRDUCTION from Coolgardie and The MOUNT.My opinion ONLY.

So you can follow MY THOUGHTS and as always DYOR+DYODD

Firstly Tindals underground.

Empress instead of getting mined underground heading to the surface if you look at the way the Empress has been mined uptil now,its getting its top scalped and we're mining an open pit heading downward.So i would write EMPRESS workings off as being from here on in an OPEN PIT and consequently any ore there heading towards the surface should be mined cheaper.
Naturally at some stage,if and when they get deep enough,they will meet some of the drived access from underneath,opening up the underground to a possible second access,if the pit extends to any great depth.(IF)
As the company has implied/stated when they were pushing underground production,steady state production is around 50koz/Month.When they went above this,there were problems.Logic says one access would not have helped with congestion getting ore to the surface,or trucks past each other.
Tindals u/g currently has 6-8 months ore ahead of itself.It has 4 bodies similar to those already mining,so the company can be reasonably confident of production continuing at similar rates ongoing.(the company may or may not have plans to accelerate production,given they are going from the existing 4 bodies to 8 in total.So far they know they're there,but haven't worked out the grades or the mining plan,or accesses,at least not publically.
They are giving themselves 6 months to do so any maybe see what eventuates with the pits with regard to depth and how that may or may not affect underground operations.

FY12 -financial year or full year?
March qtrly was emphatic it was financial year.If it still is then this QTR will be exciting.DYOR+DYODD and if not?I'll let you do some mathsand you can make up your own mind.

OPEN PITS as i have already mentioned before.These pits have small defined resources,but the ore area is known to far exceed that defined in the normal McFocus way.FML only define what economically justifies commencement of operations and in this case initial pit width.1Km in a line and 250/270 meters coming off at the EMPRESS end and we don't know about the pits on the others yet as they are still working it out.The other ends resource is "estimated" at being larger.My words.

The MOUNT-A McFocus anomoly.They have defined enough to economically commence operations and THEN put in a portal size that signifies a major underground operation.Started calling it their second gold camp from memory.However the veins are narrow,the grades are high and they've just done a lot of access driving,now stoping this QTR.Real problems with trucking the ore out given twilight courfew.12 months or more before getting tentative approval for their bypass.Picture at Xmas? time showed a fair bit of ore sitting on the ROM pad.No mention of Grade though.A mention that Diamond drilling had ceased in March? until end of May? awaiting results.They could have open pitted the ore at an overall lower grade(can't remember what was mentioned)
I suspect there was at least one diamond hole done when FML had a partner DYOR+DYODD and the resource has significant potential depth and width,with FML touching only the visible surface.I suspect some analysts doubt its productive potential and await proof in the pudding.(production)Having seen it deliver 6Koz in a QTR and now a newer method of firing narrow vein ore,to reduce dilution,hopefully it reaches the original ramp up figures of 60koz/yr,although again those figures have been falling in presentations as the company has got more disenchanted with the trucking issues and delay in resolution-hopefully sorted.

Reduced costs.

Empress body ore will be pit ore for the time being.
The mount will be higher grade less dilution and trucking per ounce(resue mining/firing method).Stoping this QTR.
Tindals u/g supposedly now stoping higher grade ore and back into full swing(15koz - more is my guess this QTR.
Pits hitting higher grade ore at depth/with depth if company comments and released drill results are accurate.

hoping for a nice BONUS BUMPER QTR to finish the FY 2012 off and hurry along that re-rating.

Hope this assists you to understand my train of thought to the potential results i see.

as always DYOR+DYODD

fitnfam