G'Day all Have abstained from repeating my thoughts regarding...

G'Day all
Have abstained from repeating my thoughts regarding where i believed the unrecoverable
gold was ending up as i'm clearly on record with my historical thoughts regarding this important
matter.
The reality is becoming blatantly obvious the current Gravity plants engineering configuration &
lack of a CIL circuit ( even though the hammer mills helps) is very likely allowing unacceptable
percentages on a un-justifiably uneconomical gold recovery basis to very likely be ending up in the tailings-their just is not imo any other plausible explanation for the very disappointing gold recovery achieved thus far.

Just stress an important fact -if this is reality -the unrecoverable gold flowing through to the tailings
is not lost its been mis-appropriated to the tailings & can/should be recovered-as soon as realistically possible.

OK -Yes sure their is dilution to contend with & is clearly an additional issue especially with narrow vein high grade-though will discount this as being the primary cause as the gold grades are high enough to be recovering more than that which we have even allowing for dilution.
Recovery as per tonne through-put through the gravity plant is has been dismal .

So the here & now .
We are about to hear with absolution .
1) What has a third party mill with CIL circuit achieved regarding gold recovery ?

An efficient CIL circuit depending on the metallurgy of the ore predominately being
oxide or sulfide & other factors grind micron/size, the strength of cyanide & circuit retention time

are all just part of the many considerations that would determine actual recovery.
A tricked up CIL circuit attached to the appropriately engineered gravity plant can recover
extremely high percentages up into the 98% recovery margin.

I would not expect this from a third party mill though expect it will be likely higher than 90 %

So the 10 tonne batch from the intermediate zone will establish & determine the actual recoverable
Gold grades per tonne -obviously this will establish if the gold grades are high enough taking
into account dilution during exaction that need to be healthy given Cascavel is a low tonnage
through-put facility with out a CIL circuit.
The results will to a large part determine future options .

Second will be the evaluation of a ten tonne batch of tailings - through the same third party
CIL circuit-again results will be very important - take into account the likely inefficiencies
of the cascavel gravity plant with out a CIL circuit are likely still allowing un-captured gold
to end up in tailings .

So i am not going to get into a sht fight about whether the gold is their in the mine and or if their is
commercial quantities of high grade gold in the tailings-am prepared to await the actual results
pending -further any gold currently flowing through to tailings is just adding to the tailings
inventory that should be approaching 40,000 tonnes give or take a couple of tonnes.

So very important factual information will soon be determined, i am strongly in favor if its determined that there is high grade in the tailing- 10 grams per tonne or possibly even higher
that the tailings be contractually inclusive of haulage costs be bulk treated through a third parties mill with a CIL circuit on a toll treatment percentage basis.
This obviously would allow all the historical misappropriated unrecoverable gold to be recovered, refined & on sold - even after allowing for a make it worth while percentage to the third party -leaves or should leave significant revenue through gold sales to flow through to the balance sheet.

To what scale is unknown -though if the CIL evaluation taking place justifies then imo lets boost
the coppers before decisions are made regarding OGX's future direction .

Be it CIL at Sertao , CIL at Cascavel & expansion of exploration programs, every thing must be economically justified .
If a toll treatment J.V. arrangement can be negotiated it will take some time to treat as its no so much
the treating of the tailings as their are some very large tonnage capable CIL processing facilities it will be the haulage to time to transit to the appropriate mill .
Again its just a numbers game the numbers grade per tonne has to be high enough to justify.
Time will tell -As said each to there own opinion & -we will know soon enough that facts we need
to know that will determine the realistic options.
imo-gltah
salt