Ann: Progress Report - Production , page-3

Agreed Tazmac,

This is a much better report from MCO.
Much more open communication from them which is nice to see. Its easier to write a more transparent report when their is good news!
Its early days yet but it appears that 10-12grams is very achievable depending on how much ore is available at burns. My favourite line from the report thus far is "In burns reef a recent grab sample selected for thin sectioning returned a grade of over 40 ounces of gold to the tonne (1341g/t).
You do need to keep in mind that the sample grades are from .37g to 105g. However, you have to think that to achieve 10g/t you could use that tonne (40 ounce) to dilute 120 others with no grade or 240 with a grade of 5g/t. These are very encouraging numbers and are indicating that historical grades may be acheievable! The difficulty will be ramping up production to say 5000t month and keeping a constant head grade. Dont want to get to ahead of myself though!!!

Another great line from the report:
Ore production is expected to significantly increase once the Kenny reef (level 9 North) and Donaldson Reef (2 level east) are accessed in coming weeks and months.

Mining is currently at 240 tonnes per month. I hope to think significantly increase means 1000+ tonnes.(or 3000 as previously stated)

1000t month @ 10g/t is over 6 million revenue (@$1500 ounce)
1500t month @ 10g/t is over 9 million revenue (and cashflow positive)
2000t month @ 10g/t is over 12 million revenue

Also expect a drilling update within two weeks so exciting times!

Keep it up MCO!