They have promised nothing.Just told us what they are doing.NOT BOTHERED WITH EXTRAVAGANT HYPE-That takes balls.
forget the guideance for this quarter(they had to say something didn't they).
look at how they operate.That's the real measure.They just get on and do it without dithering.
1/stumble accross a rich surface veign orebody-and start digging it out while it lasts for quick cash.The Mount.then delineate it when it doesn't stop but gets bigger.that's no lets do a resource calculation,scratch our harries and do a costing about mining in 5yrs time and plan some drilling.That's real mining attitude for you.
2/get a plant.Recondition it for a LOOOONG campaign life-not a bodgie quick fix to get up and going on the cheap because the gold price has jumped up.EVEN IF IT TAKES LONGER.
3/get said plant up to capacity and YIELD.Toll treat for 37 days and book a million profit over operational costs for that time.That's 700oz free golds worth,or $3m worth of gold sales at $800 cost(2100 ounce produced equivalent)
4/poke feed through the plant like theres no tomorrow-all that low grade stuff awaiting a long forgotten non-existant leaching operation by prior operators-hanging round.Yield 90+% versus around 75% at best for a dirty environmentally unsound leaching operation.Dump the processed waste in your existing 3m ton hole.Thus reducing a future environmental (rehabilitation costs)clean-up liability at the same time.OOPS FIND SOMES HIGHER GRADE THAN YOU THOUGHT.
4/keep adding higher quality feed,knowing even an extra 50k at 8g/t is only going to lift your quarterly milling grade by maybe .5g/ton
5/sacrifice production now for greater access-so you can have trucks passing each other on the decline to really ramp up output from 2 to 14 seams so you can REALLY MINE and make some money and reduce costs further through better transport equipment utilisation -NOT NOW - BUT AS SOON AS YOU CAN-SENSIBLY.as this requires careful grade control to reduce dilution.(probably best with your own personnell on thin rich veins)
6/Know that once you scratch down some of the low grade off the top of some of these large pits the g/ton starts to rise.
7/Take control of your operation from contractors possibly taking advantage of your prior financial weakeness and equipment shortages with harsh contracts---seeing off of maintenance contract of leased plant for large monthly cash cost savings.NOW THAT TAKES BALLS when its on equipment you lease from them.Bet next you see the buying of trucks and plant outright(driven by your own personnell)As already indicated.
8/It doesn't matter if your mining 400g/ton if your average throughput through your plant via dilution(tons hauled through sloppy ton driven mining) takes it down to 2-3g/t then your costs go through the roof.
9/ your own personnell can make quality grade control driven decisions,cut out the dilution and your ahead megabucks.
10/all it takes is
3 loads a producing 4 loads a producing 5 loads a producing 6 its getting boring 7 and a new pit makes 8 9 then 10 Its all MERRY XMAS THEN
the 2g/ton through the mill becomes 4g/ton and our shares more than double,because that's double for half the cost per gram.Heaven help us if they strike a large high grade orebody
11/$400 or less/oz at 4g/ton
SSSSSSHHHHHHH
don't tell anyone,let them figure it out themselves,that way we can all stock up before the new year dawns.Just watch that g/ton milled slowly keep rising(anything mined above 2g/t does that at the moment) and the cash keep jingling into their bank account quicker and quicker.
DYOR -never assume it makes an ass of you and me.
FML Price at posting:
5.3¢ Sentiment: None Disclosure: Held
(20min delay)