Surely there are multiple potential bottlenecks this company still needs to contend with to ramp to 5000 oz a month. At 20 g a tonne that's still a heck of a lot of ore they need to get out of the ground each month. Some thoughts;
1. What's the maximum amount if haulage they currently have capacity for with existing equipment?
2. Is hauling ore from an underground mine more time consuming, more intensive and done at a slower rate than an open pit mine? I think yes.
3. If they find gold at different locations how will they mine that, transport it to the existing mill? Have they got the equipment for that?
4. What is the maximum capacity of the worst performing component of the mill? Once a 50 tonne hammer mill is installed to the gravity plant, I think this will then create bottlenecks downstream in the process? If so how much will it cost to upgrade those components? Like a car engine at some point a 2 litre turbo can only be tuned so much. At some point you just have to get a bigger engine (mining operation) if you want to mine the big quantities.... when will ogx hit that point?
5. Have they got built in redundancy if single points of the process fail?
6. Weather- in Oct their is a significant increase in rainfall as it approaches monsoon period (wet season)- this bad weather will have a negative effect on increasing production
OGX Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held