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mark79bond

1,339 Posts.

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21/04/18

14:11

Post #: 32604088
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Originally posted by DeltaVee ↑

So what was really going on here during late Feb through the end of March? Statements made by mgt about what ore was being processed and how much they expected to run certainly seemed positive and so on.

19th Feb....

"Large hammer mill Installed and will mill high grade ore this week"

"Last week the mill ran waste rock material and high-grade ore will begin to be processed on Monday"

"Production ramp up is underway, the higher-grade ore that has been stockpiled underground is currently being hoisted to surface for processing through the new hammer mill"

9th March....

"We are currently processing 1,500 tonnes of ore and development ore that sits at surface through our Hammer Mill 3"

Then amended (13th March ann)....

"It is expected that we will process a minimum of 1,500 tonnes of ore through the plant this month"

etc etc etc

Clearly we had good reason to be positive regarding the HM3 development. High grade ore was being run through the new mill (apparently). They were hauling higher grade ore to surface for processing. And they looked set to achieve a healthy 1500 ton minimum for the month of March......positive stuff.

Then we see they have achieved something rather different:

"HM3 was fed with 640 tonnes of tailings, low and medium grade ores and mine development material producing an average 6.4 g/t grade and an estimated recovery of 83.9%"

"Higher grade run of mine ore to be processed as part of final commissioning"

"Final commissioning involves processing 5,428 tonnes of a blend of low, medium and high-grade ores and development material currently on the pad and another 1,041 tonnes of mainly high-grade ore which is underground awaiting haulage".

Perhaps mgt set their goals a tad high? It's always better to under-promise and over deliver in this game imo. I appreciate that reality often doesn't live up to expectations.....but they told us one thing and certainly delivered a strikingly different set of information ie 'the reality'.

Anyway.......

I would expect figures for April should be better than those achieved during March........they will have to be to meet the targets/expectations outlined by mgt.

They are currently aiming to achieve a processing figure for April ten-times larger than that seen for March.

We have been told that a total of 6469 tons of ore is to be run to complete final commissioning of Hm3 which is "expected" by end of April.

HM3 has been running at 50% during the majority of this time. To provide some perspective that's approx 517 hrs aggregate run time required to process those 6469 tons......(at 12.5tph).

HM3 would need to run 17.25 hrs a day uninterrupted for 30 days straight to process that lot (with no breaks or equipment failures allowed). To put it another way approx 8.5 hrs a day clean run time for 30 days straight if they manage to run at 100% capacity (which they aren't, we've been told that).

Consequently I would expect more timeline blowouts, delays, and processing figures coming in under expectations again.

Hopefully the end of May will see increasingly better news come to light with them set to deliver the first full month of ROM processing and commercial production over this time.

Expand

Consequently I would expect more timeline blowouts, delays, and processing figures coming in under expectations again.

Hopefully the end of May will see increasingly better news come to light with them set to deliver the first full month of ROM processing and commercial production over this time.

My point exactly

OGX Price at posting: 8.2¢ Sentiment: Sell Disclosure: Not Held
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