Ann: 160719 - Cascavel commissioning update-OGX.AX, page-20

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The Alchemist

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20/07/16

08:57

Post #: 18313244
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Originally posted by sirjohnnyboy ↑

I saw Mark Papendiekapopolus (Mark P.) give his presentation at the Gold Coast and was impressed with his understated respectful disposition and the toned down anticipation of production commencing and first gold pour. He came across as very genuine and excited about the prospects of a rewarding gold head grade (without providing any guarantees of course).
The projected timeline would indicate that an announcement is due reasonably soon, and even if there is some delay, an announcement outlining progress is also likely. With a simple gravity circuit, delays could be expected to minimal (no leaching and no grinding).
Also of particular interest were his indications of just how large the mineralisation might potentially be, with this fiscal year scratching the surface I would seem.

I like the fact that the current plant has been designed for 100,000tpa even though only 40,000tpa will be used this year and with the expenditure of AU$2Mil the plant can be upgraded to 200,000.

I also like the fact that the wast material is dry stacked with no tailings dam required.

Happy to take a position.

My take is a little different to yours, as I understand it (and I have listened to the presentation several times, the intention is to ramp up with the low grade material and then change (alternate) to the high grade stope ore for the purpose of obtaining a realistic estimate of the head grade going forward. Agree that the initial overall average will be low as as the mine is slowly bought into production. This is logical because while making initial improvements to the circuit and recoveries, you don't want to primarily use high grade ...which may be wasteful -but we will still get a good idea quite quickly (I believe within the next three weeks). Having worked in a mining operation with a not dissimilar circuit, the grade should be known with-in hours of changing to the new ore blend.

Because this type of ore is not a uniform widespread mineralisation, it is not possible to define the grade either by drilling or when it is sitting on the ROM. Consequently ...this is the reason for processing a bulk sample of high grade material to obtain the grade we all seek. As Mark P. said ..."another word for obtaining a bulk sample is called mining".

I'm not a rock doctor ...but this is my take.

Cheers,

SJB

All IMHO

spj377645 (at) yahoo.com.au

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The bulk samples processed some time ago at another facility were very exciting. Waiting anxiously!

OGX Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
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Ann: 160719 - Cascavel commissioning update-OGX.AX, page-20

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