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Ann: Exploration Update Smarts, page-139

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Upwego2020

354 Posts.

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15/08/20

06:37

Post #: 46559544
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Originally posted by kojak78: ↑

Let me answer you, hope I Justis will correct me later on.

You can answer the question yourself, just start from the end.

The bottleneck at Karouni is the mill. Currently it can handle 80k tonnes per month in theory. In reality it is affected to a degree by weather, during wet season the amount of saprolite and oxidized/fresh rock does matter. Troy used a lot of mixing ore, so hard to tell. Let's assume 66k tonnes per month.

The plant will have recovery rates of 93-96 percent, which is very good by the way. So the only variable missing to give you the amount of gold ounces produced is grade.

Let's say you have 2 g/t open pit ore from Hicks. 66k tonnes * 2 g/t * 0.96 / 31.1 = 4075 ounces per month or 12k ounces per month.

Is there a second bottleneck? Maybe. Mining. Troy was able to mine 2-3m tones per quarter in the past, both during dry and wet season. The plant will use 66k tonnes of ore per month or 200k tonnes per quarter. To get the ore you need to mine the ore itself and the waste. The waste to ore ratio varies. In general it is higher at the upper levels of a pit and gets lower at depth when the pit gets more narrow. It may be 1:4 at depth. That means the 200k tonnes of ore would require 800k tonnes of waste to be mined, overall 1m tonnes. No big deal, easily handled by Troy. But the ratio may be 20 when starting a pit. 200k * 20 = 4m tonnes, not doable by Troy, at least during wet season.

Going underground means two things. First of all grade is going to be something like e.g. 4.4 g/t. So your production is 66k tonnes * 4.4 g/t * 0.96 / 31.1 = 8964 ounces per month or 26892 ounces per quarter. In general ore to waste ratio is much lower in underground mines, something like 1 : 0.7. So Troy would need to mine 200k tonnes of ore plus 140k tonnes of waste per quarter. 340k tonnes vs. 1-4m. Easily done?

No because you have a new bottleneck, the decline. The decline will have 5.5m x 5.5m, the Trucks have 3.85m, 40t net. 340k tonnes / 40t = 8500 truck loads in 90 days or 15 Minutes per truck load.The decline can handle exactly one truck at the same time. You have 15 minutes for a truck to go down the 500m decline, to be loaded, and to return. Add to that time where no trucks can go underground due to development... If that time were 1/3 you had 10 minutes left. Just naively assuming 1/2 for loading and 1/2 for trucking you had 5 minutes to go 500km underground and return. 12 km/h. The trucks may go as fast as 55 km/h but underground you do not have much margin for error, so the 12 km/h is way faster than you would think.

So basically there are other constraints at place underground and the weather will not matter as much because the tonnage is so small.

Costs are going to be $4 per tonne open-pit mining and $100 per tonne underground mining. Treatment costs at the plant $24 per tonne.

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thank you Kojak for answering my question and putting in the time for that thorough explanation. I enjoy reading yours and Justis posts, you both seem very knowledgeable about gold mining

TRY Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
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