Thank goodness the shrieking and wailing has finally died down (a bit)... I notice that some investors have chosen to set their own pants on fire and then run around waving their hands in the air whilst shouting at the imaginary birds - if this is you please put the knife down and call 000 immediately...
And for those 'investors' that have trouble understanding big words please get your parents to read and explain the Update for you... may I recommend that you take a deep breath and read
ALL THE WORDS TOGETHER before you post your down ramping waffle.
For the rest of us I will try to explain why this announcement is actually GOOD news for the LTH -
1) The big hammermill (3) is currently recovering over
84% ! - this is good.
2) 640 tonnes of Tailings, development material and low/med grade ore
(ie all the rubbish) gave us an average of
6.4grams/tonne -
even with all the commissioning problems - this is very good.
3) the big Hammermill (3) was down for 2-3 weeks during commissioning - this is bad
HOWEVER...
'Most of these issues are not Hammer Mill related and are in part of a legacy of what has been an underperforming existing milling complex which our ‘Back to Basics’ strategy is slowly addressing. Management confirm that these issues and others have been or will be rectified during April and expect processing throughput to increase substantially in May'... this is good.
4) The big hammermill (3) is
NOW FIXED and we sacked more dodgy Brazilians - this is good.
5) the smaller Hammermill (2) continues to find
27 grams/ tonne gold
EVERYWHERE - this is good.
6) We have saved another
30% on production costs - this is good.
7) Hammer mill (4) at 50 tonnes/hour
is arriving in May potentially increasing the output by at least a FURTHER 200% - this is good
' As already reported the fourth hammer mill (HM4) is expected to arrive at Cascavel in May (3 weeks later due the slower runup of HM3) where it will be sequenced into the plant to produce alongside HM3.' - this is very good!
8) Drilling results on some of our
numerous other tenements are to be announced within 2 weeks - this good.
The Fundamentals
HAVE NOT CHANGED - we are simply overcoming challenges associated with starting a gold mining company....the big hammermills work, the gold is there and we are now extracting that gold at 84%.
DYOR and read the Updates yourself - READ BETWEEN THE LINES - this is the birth of a mining company - it is slow and painful, with lots of screaming - but IMO it will all be worth it in the end. GLTA.
