In the update last Monday, they stated that the processing of the 1000 ton sample of tailings would not commence until the second shift is started. With hammer mill 4 on order and due for delivery in the middle of next month, then commissioned by the end of next month, I would think, they must be planing to start the second shift well before then.
This week could be a little ripper if the grades from hammer mill 3 are good, as I am very confident they will be, they could easily be running HM3 and HM4 two shifts a day ( 12 hr total ) six day a week by the start of April. So March could, should, be the best month for OGX yet,,, if all goes to plan.
Being very conservative,,, yes another crack at the numbers, by April ,
HM3 10 hr a day ( 2 hours down time a day ) at 20 tons per hour ( should not be hard to achieve ) on a 5 day week,( one day of and one day maintenance ) and a grade from the mine at 14 gt ( should be more ) gives us ~ 430 oz a week.
HM4 running the same schedule as HM3 but on tailings at 5 gt ( again could be more ) is ~ 160 oz a week.
Four weeks in the month gives us ~ 2360 oz for the month or around ~ 4 million AUD into the account. Yes lots to pay out, the gold stream payments and running costs ect, even if it leaves 500 AUD profit that is still over one million AUD profit, plenty to keep the doors open.
All very conservative numbers IMHO, but helps demonstrate the profitability of the mine. Onward and upwards from that point on, be interesting to see what management has planed IF the grades from HM3 deliver the goods.
I do have some reservations in regards to the reliability of the hammer mills, you get what you pay for, at 25k a shot even on the numbers I have used, if we loose a mill for one day, that would be more than enough to pay for another. In my opinion they should be ordering a third large mill, HM5 as a backup incase of a break down of one of the other mills to keep the cash flowing. Having all the parts one can think of is a good thing, but having the ability to simply take two steps to the right and keep producing while the other mill is fixed can add up to big money very quickly.
It is also important to make sure all mills are compatible, do not jump from brand to brand, keeping components interchangeable is one of the keys to controlling costs ( just as Ansett Airlines ) . Looking forward to a good week, I hope ) and I wonder what we will be throwing around this time next week,, praise or knifes?
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