Ann: Update on Hammer Mill 3 Commissioning, page-36

All in all this doesn't seem like a disastrous announcement. I have read nothing that strikes me as a huge red flag that the actual viability of the project isn't there. People need to carefully read where they say they have only generated 6.4 grams per tonne. This is from tailings, low to medium grade ores, and development ores (not run of mine feed!!!). As the higher grams per tonne ratios (28.64 and 26.4) from HM2 show, this ratio is likely to be much higher for HM3 once they start processing the good stuff. What is really important to me is the recovery of 83.9%, which shows that the hammer mills have successfully addressed the issue that the previous management was having.

The delays due to equipment failure are annoying, but not disastrous. Only complaint here is that the company should have let us know they were having equipment issues a month ago instead of keeping us in the dark.

Other highlights:

-Encountered wider and unexpected gold veins at Mestre

-Exploration and drilling updates should make good news flow in the near term.


Overall, my response to this announcement is "wait and see". I'm more optimistic after reading why there has been delays (could have been a lot worse, say that they had been processing high-grade ore and STILL only getting 2 g/t or some other nightmare scenario). May production should be the real crunch time. If there is a sell off from the short termers, I will be buying

Cheers

Atlas