minesite june 30 article

http://www.minesite.com/nc/minews/singlenews/article/cga-mining-accelerates-its-production-ramp-up-at-masbate-while-segilola-looks-like-another-potentia/1042.html

"According to Mike it should now be possible to expand throughput to 6.5 million tonnes per year in short order, and he wants to take advantage of the gold price which is now double what it was when the feasibility study was carried out. At the moment a single ball mill and a SAG mill are treating 500 tonnes per hour, but CGA is in the fortunate position of having a twin ball mill in reserve, and this will be brought into operation next month. Once this starts to operate, and reaches steady state soon after that, throughput should reach 600 tonnes per hour and thought will then be given to the best way to increase throughput further to around 800 tonnes per hour. A bit of forward thinking means that the power generation installed at Masbate will be man enough for the job.

At a rate of 500 tonnes per hour Masbate can be expected to produce 200,000 ounces of gold per year subject to grade. At 600 tonnes per hour production should be significantly above this level and things have moved so fast that this level of production can now be expected throughout the year to end July 2010. This is quite an improvement on the original plan which envisaged 50,000 ounces during the rest of this year while the plant ramped up, and then 200,000 ounces in calendar year 2010. It is reasonable to assume that this performance will ensure that cash costs remain just below the anticipated US$450 per ounce, and stay thereabouts until production advances to the 300,000 ounce mark in 2012 when throughput should have been increased further to 800 tonnes per hour. Masbate has plenty of years ahead of it at this rate, as the total indicated resource base is 4.55 million ounces, the total inferred ounces amount to 3.22 million ounces, and there is a probable reserve of 3.03 million ounces."


Rowingboat