I have consistently said drill, sample/analyse, design, plan and do your sums before you dig.
I am not convinced that Union Hill has paid its way. The gold grades being produced from there are less than 3 grams per ton. Remember this is an underground mining operation not an open cut. It is better to shut down milling operations over the weekend or more and only process ore that is economically viable. Processing uneconomic ore through the crusher, mill and tailings dam just to say we are running 24/7 is futile.
There has been fluctuations in the amount of ore being produced from the A1 mine due to unstable ground conditions and gold grades that were at times below the cutoff grade for economic mining. Thats the reality of mining. At times when there is no ore that is of a gold grade that is high enough to process through the mill then the mill should be shut down and any maintenance needed done. Better to send mill/process crews home on basic pay rather than have to pay penalty rates for night and weekend work processing uneconomic ore.
Again, I hope CTL survives, becomes profitable enough to get a healthy bank balance and be able to afford to do a well planned exploration drilling program at Union Hill mine. Yes I want it to be another Fosterville. I believe/hope that there is much gold down there but you have got to drill, sample, analyse and plan before you dig.
CTL Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
