Latest appointments at MCO include a stunning company secretary; an expat Canadian geo; and next week one of the best mill operator's in the business - reputedly a legend -among his peers, is due to start. Plus a company metallurgist - all enthusiastic about joining an already excited team.
Top challenges to make mco a raging success include sustainable production, growth, replenishing and building reserves - so the job is to discover sustainable reserves. Hence the need for the big drilling program.
MCO claim to have saved $800,000 contracting Tasmanian outfit E Drill who are currently one month into a 24 month drilling program. And a report coming out this week looks at the variability in the reconciliation issues of MCO's gold refining. Up to 300pc improvement or variance in original assays has been detected.
The company is currently reassessing when it will be cash positive - issues with the reconciliation of the assays has slowed them down and the Chinese will front with more money in June.
Apparently there is a reasonable amount of concentrate available now. The refining technique which will take about a week before the company is likely to start selling gold. Its now down to fine tuning and clarifying strategies with its refiners and the product generated on site.
We were told a production report should be out within a month, but it was explained that MCO was currently a little beholden to other parties for this to happen. Meantime they quite happy with plans to address all issues.
They are "Pretty right for for staff at the moment, no vacancies." Six air leggers are operating in two shifts adequately keeping up with mill output from ROD and MCO. Stakeholders including the Chinese are pleasantly surprised with the ROD ore coming out. They visited last week when 200 tonnes of very showy ore was being trucked over three days from ROD,
A new geology office has a shed off the side to log the core either in or outside and and further up the hill, there are sample preparation areas for sending samples off for assay.
The target for the new mining lease applied for was the Wallaby, which is Peter Jackson's favorite, Nick's is one of the levels in MS gap zone. CEO Mike Botting's is the Wallaby, which he says has the virtue of putting limited mining under foot, and rapid rapid access to virgin ore.
He favors any others where mining stopped, below the water table, in particular the Waverly where the old miners simply used a bucket and winch then pack-saddled ore down steep slopes for the creek to process. And I mean STEEP.
The Gap Zone is right at the Morning Star and the Waverley is reasonably close - 2.5kms away - and we may even see a decline there which would possibly be cheaper than putting a shaft down, as well there is discussion at putting declines in the ROD and the Wallaby.
When MCO first put its mill into production a metallurgist first put through a lower grade batch trial, and sent a higher grade off for refining, but tested both grades checking the suitable processing of both ore samples. The lower grade went to Gekko - who found it attractive enough to continue milling the product.
In November however it was milling Rose of Denmark, while higher grade ore from Morning Star was producing concentrate , and on which they did a different test or focus with ICP which was generally used to identify other elements deleterious to the cost of refining gold, particularly looking for arsenic and sulphur, thus providing a quantification of refining costs, while doubling up on the original gold assays.
These have subsequently, and albeit surprisingly, came back 200 and 300pc higher on the respective batches than their original fire assay samples. And the implication on yet further results favors processing the Donaldson Reef versus other areas because of their certainty.
The facility we have is more than capable, we are now using ceramic screens, possibly implementing a second magnet, and the most expensive costing $5000 is the possible addition of a further Gemini table which follows the Wifley table. These additions simply refine the process, improving availability and consistency.
I bought most of my MCO's around 40 cents believing a little less then for its future, as what I do now. Its certainly a good time to buy in.
The commitment of the company, expert staff, and professional the state of the art outfit blew me away since the first of my four visits.
One comment we gleaned from outside the company from a former employee was What they need is a pre-crusher for the main draw which would be good for ore coming out of Dempsey to knock some of the ore down to reasonable size instead prior to that ore entering the mill.
Hell they have put in some infrastructure since was there last (3rd).
However at this stage I am most emphatic in saying: Anyone concerned with the vision, investment decisions and componentry put in place by MCO should be more than happy soon.
>> I am assured the 1000 ozs a month predicted at the 2011 AGM is achievable (two reefs assays are being milled at 200 and 300pc over original hypothesis), and MCO chairman Nick Garling assures me we will certainly get there (with bells on) eventually. >> >> The more important point is that there is currently a reliability issue in under estimating assaying samples >> and this is being sorted out in the next few weeks. >> >> Over past days I have discussed with people much more expert than I, >> all unanimous in saying MCO is putting too much infrastructure, and >> effort into selecting top committed staff into the mine, for the >> benefit of Australian and overseas investors, and for the company to >> be anything like a short term thing. >> >> During our fleeting Woods Point stay-over, "extremely professional" >> would be how I would describe all those involved with MCO whom we saw >> . >> >> Among staff, the expert Mike Botting is admired by all and sundry for >> setting the work ethic, working prodigiously from 7am to 7pm for five >> days , then commuting home to his wife in Melbourne on week-ends. >> >> Through the week Mike shares work accommodation with three other >> employees - in digs above the extremely functional new WP head office, >> while a further five employees reside adjacent in MCO's new apartment >> complex, gathering when time allows, with a further five employees from >> Woods Point's defunct hospital to share steaks, cameraderie and beers >> around MCO's communal "think tank bbq," Proving a real dedicated team! >> >> For smoko, and lunches there is in-house brewed coffees, takeaway >> tucker, or packed crib lunches from the pub for mine staff, or from >> the communal hub, Woods Point Post Office general store, nearby. >> >> The "intrepid duo" reporting here is not in the best of health, and did not realize >> just how hard it would be after an 800km venture to the mine, to keep >> pace 24/7 gleaning intel, disseminate then relay it back to fellow MCO shareholders. >> >> The above was made more difficult by the fact that "secrecy is paramount" under CEO Mike Botting's watch, with zipper lips contractually respected by all staff. Info is so tight that even the kangaroos appear to need permission to break wind. >> >> As a consequence, speculation about MCO runs rife, especially among >> former disgruntled employees; several ignorant shareholders and non >> shareholders including ourselves; neighboring townsfolk; media; and on >> several well used and promoted internet mining blogs. >> >> But while MCO attunes itself to highly functional and efficient >> "full-on production," the most profitable gold mine in the district by >> far, is Woods Point's Commercial Hotel. >> >> Mine host (pardon the pun) is the extremely mercenary "Box head" >> Taylor, a past fencing contractor from central/far western NSW, and >> former gold miner extrordinare, teller of tall tales & true, who >> according to the locals could not have timed it better, occupying the >> almost regal position in WP community as new publican. >> >> "By far the best gold mine I have ever worked in," Box says as he >> decants hundreds of litres of port costing near $2.50 litre into 750ml >> bottles, with attached askew historic labelling, branded as the >> legendary "Teararse Gully Port" - $18 a bottle - "special price for >> you, thanks," he says). Little knowing the writer's mates buy 17% >> better premium bulk port from West End Wineries Griffith for $2.50+ per >> 20litre drum. >> >> Minutes later Box snatches our freshly opened bottle back - we had >> clearly offended him by opening for 'a quick tasting round' - thus >> ensuring the till ticks more rapidly at $3 a nip over the bar. Worse >> news was to come. Only Carlton on tap; 10 oz pots $4; Stubbies $6; >> Penfolds dinner red $80 bottle, We proceeded to slake thirsts with >> caution. >> >> Much to our chagrin, we are then told the power will be out all over >> town (including the 1000 volt linkage to MCO mine) for much of our >> visit, fortuitously MCO management chose this as ideal to connect >> more cabling over the infrastucture of the ever expanding 'state of >> the art' mine. >> >> We were also told two further snippets in succession, which we later >> confirmed. Chinese investors with bigger wallets than us, visited the >> mine last week.. One who came via a casino the night before having >> lost $2 million on the tables. Last Wednesday, Thursday, Friday saw >> 200 tonnes of very showy ore go down the road from Rose of Denmark to >> MCO plant for processing. >> >> Trying not to steal anyone's thunder, but part reason for delay of >> further intel from hereon could be a pending announcement this week >> from MCO, relating to latest drill or assay results (as MCO indicated >> on Twitter). >> >> > >> By the way after this week's visit the writer declares he and his >> family hold around 3 million MCO shares and certainly would buy more>> if they could! But do your own research.
MCO Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
