G'day OZ - MGT at the time can't have been informing the market actual mill feed
grade nor actual mine head grade's to the market and clearly they weren't or
OGX would not have the reported recently 9.3 g p/t in tailings then why would
you possibly think tonnage reported was accurate.
As you well know from you statement & experience if you are aware of these
actual stats'-then you can have a very good idea of expected Gold Recovery
certainly within an expected ref -range !
Hence imo why the figures reported were NOT accurate ATT-clearly they can't be ,
this gels with the market not being informed that within two months of the gravity
plants commencement of production in fact while it was still being commissioned
MGT had called in consulting experts whom were on site conducting a thorough
assessment ?
So ATT -if you wish to verify for your self -the market was being informed that
the gravity plant was being fed 2 grams per tonne & the tailing were reported
as being < 0.05 grams per tonne (less than 1/2 gram per tonne).
Again this is what market was being informed-so the market thinks ok
I subtract the tails grade from the feed grade & that leaves 1.5 gram per tonne
at the most-so therefore recovery of the gravity plant is 80% or slightly better
as tails are less than 1/2 gram per tonne.
Clearly these figures must have been bogus -tailored to imply every thing was ok.
WHY do I say that ?
1) MGT called in consulting experts likely within 4 weeks they new there was a serious
issue -why call in consulting experts if recovery is 80% or better ?
Clearly you wouldn't as 80-85% range of recovery is great recovery !
So given they MGT at the time new there was an issue as they had called in consulting
experts
the recovery was much less than expected or they would have NOT
called in consulting experts would they!
So again
the mill feed grade must have been much higher than that which
was reported to market & this adds up now does it not with 5 x separate
one tonne samples having been taken from different positions in the
tailing that have come back with an average grade of 9.3 grams
per tonne ?
So if porkies were being told to calm the market at the time with regard to the real
actual mill feed grade ( plant feed grade )
why would we presume the tonnage
to be correct?
It seems obvious to me they MGT at the time did no want the market aware of the
severity of the issue - you see as time goes on this issue did not go away but got
bigger & bigger & yet the average stock holder was oblivious-until some began
exiting with Ernest & collapsing the share price - it begins to smell even more
at this stage does it not.
Look at what was recommended by leading market experts post there
assessment & then ask why actual recommendations were not expedited
in a timely manner ?
There were modifications to the tertiary crusher made-smaller screens etc that
did not work & was always very unlikely to be an effective remedy give it a try ok
why then the stalling for 12 months you can read into the recommendations made
by consulting experts whom said if modification to the tertiary crusher don't work
then we recommend you install a small ball mill to ensure a finer crush that will liberate
more gold that will allow increased Gold Recovery.
That s right recommendations made within the commissioning period
of the Gravity plant were the same as the current remedy being
implemented just Hammer mills are being utilised instead of a small
ball mill-both achieve the same thing.
So why did it take another 12 months to implement what was recommended within
the first two months of commencement of production -infact still within the
commissioning period?
That's what commissioning periods are for -commissioning periods are a time when
ideally you test the plant under a high variability of conditions -varied feed rates
& mill feed grade's with as many expected different ore types likely to be encountered
as you can- including blended ores & check operational performance & gold recover
against plant specifications-through put etc.
The ideal out come is to concluded tonnage through -put & recovery are within the
specified plant design's capabilities & become aware of any bottle necks so that
in the future should tonnage through- put wish to be increased MGT have a good
idea of what modifications they would have to implement.
So here again is the link to what the consulting experts recommended.
ASX Ann 09th Dec 2016 Company Update
Independent Technical Reviews Support Recommencement
of Operations at Cascavel ..
Reviews by SRK and Mining Plus
conclude that mining & recovery issues
can be readily rectified.
Cascavel Gold Mine – Independent Technical Reviews Overall, Mining Plus stated:
"The issues observed at the Cascavel Mine are common start-up and commission(ing)
problems, and we identified no "fundamental problems that should impede
the mine from achieving success."
Key issues and areas of improvements identified in the review process included:
The key findings from the review of the Cascavel processing circuits were that gold
recoveries were most likely to have been impacted due to insufficient liberation
of the gold from the ore and from operator error during the first two months
of operation of the plant.
Modifications to the tertiary crusher (VSI) are required to overcome the poor performance
of this crusher and the circuit’s inability to date to achieve the optimal particle size
distribution for gold liberation.
If further tuning of the VSI does not result in the achievement of the desired particle size
distribution, then a small mill will be introduced to the circuit.
It just took another 12 months for the remedy to be implemented
Re Hammer mills
Its important all stake holders are aware of these recommendations made by world
renowned SRK and Mining Plus .
I can't under stand the basis for current concerns being fever pitched ?
Concerns yes of course we all want to see the actual clarification that recovery
is confirmed & healthy that ensures revenue generation can meet & exceed expected
cash burn & future commitments-no brainer we all what this clarification.
Facts that are reassuring
1) A gold stream payment was made of 380 OZ just from the very small hammer mils
recovery capabilities only 200kg & 400 kg per hour-from gold recovered from the
processing of samples .
This was the first very reassuring conformation that the finer grind from hammer
mills reported as being in the region of 90% recovered gold from sampling was thought
to be in the region of 90% this fantastic recovery from a gravity plant.
Note-Mill specification fine grind micron capabilities are known prior to ordering
this type of equipment.
2)
A 50 tonne mill has since been ordered -this strongly suggests that the 25 tonne
mill must in all likely hood be achieving what was expected as why else would
you not only order another but upgrade from another 25t mill-to a mill with
twice the capacity .
3) When you cross reference what was recommended by world renowned consulting
experts that actually recommended some 12 months prior to actual implementation
of the hammer mills-
that finer grind achieved allows enhanced liberation
& thus recovery this being exactly what consulting experts recommended
is reassuring.
4) Current historical cash burn indicates that we would have to have had a capital raising
announced by now
unless gold Recovery & Revenue generation was occurring .
5) This train of though is perpetuated as OGX has committing itself to further
exploration expenditure &is buying-upgrading hammer mills-more expenditure-
hence revenue generation must be occurring
6)
Our chairman owns approx. 10% of the registry - this is at odds with any conspiracy
theory that OGX is not being upfront with the market as if it wasn't
receivers would be in the door & all market announcements must have been
an elaborate hoax this clearly is at odds with all Asx Releases , & what consulting recommended
or what he our Chairman would want to happen to his holdings .
7)
There has only just recently been a tonnage figure mentioned
by MGT as desired through-put before results can be analysed & reported to
market.
In the Q&A session 1,500 tonnes was mentioned & as I have said previously as
there is only a single shift operational its likely with RDO's that operationally
this restricts through-put over that which you would achieve with continuous
operations, hence why in the Q & A session MGT has said by late April the
50 Tonne per hour capable Mill will have been installed in the gravity circuit.
No doubt replacing the tertiary crusher & with this extra capacity will enable
the gravity circuit to commence production & a second shift will be added to
process tailings ( seems this will be the 25 tonne mills future )
Further that 500 Tones per day is targeted through-put.
I can understand concerns being raised -due to OGX's historical cash burn quarter on
quarter-there just does not seem to be any allowance for commercial production
having only commenced
on the 19th of March with the 25 tonne mill
that time frame
will only be three weeks tomorrow & if you subtract weekends as RDO's that's only 15
working day shift only day's inclusive of tomorrow.
Very much think Esh & any one else that is feeling anxious actually calls MGT and
relay's there concerns seeking clarification.
Due to all of what has been released to market via Asx Releases & progress achieved
thus far by the current BOD & Mgt team I can't help being impressed- may be that's
partly due to having operational comprehension I don't Know but I also am eagerly
awaiting conformation that the Hammer mill is operationally successful both in
through-put & Gold recovery -due to all above logic strongly indicates this should
be a formality-we await.
imo-gltah
salt
