U3962521-I would recommend OGX buy & install another 50 t Mill primarily
as back up as its a critical piece of equipment -with initial cost vs production hours
pay back time frame its a n0-brainer-Hammer Mills though simple must be
regular maintained & overhauled a spare unit & parts on hand ensure continuity of production this allows after X amount of hours on one mill while refurbishment
takes place on the offline mill ensuring continuous operations with the other almost
always ready to bring on line when needed.
Continuous sustainable feed with the minimal dilution & meeting targeted tonnage's -eg 56,303 OZ per Annum-4,692 OZ per month will likely be & imo should
be the initial priority.
Once steading state production is proven at or about 4,692 OZ per month x $1,700aud POG is $7,976,400-much can be achieved from gold sales revenue.
Processing plants can be scaled to meet whatever tonnage through-put.
What is more important is that continuous sustained feed rate with a healthy
grade per tonne recovery that will justify the capex outlay-MGT must get this right.
EG no point in having a 300,000 tonne plant if the mine can only supply 140,000t
of mineralised feed with out the risk increasing of serious dilution occurring -its this scenario trying to treat high grade narrow vein supply as a bulk tonnage exercise ( its NOT ) that leads to serious dilution-unless the veins widen & possibly even thicken
at depth & this has been suggested -but has to be proven until then there will be a
limitation on sustained recoverable tonnage before dilution occurs .
This is why ATM -a second source of mineralised ore shallow easily recovered with a relatively low strip ratio is being sought -as it will be ideal as complementary feed.
Then the plant can be up scaled over & above-we may or may not get lucky in this regard .
In the meantime adding a CIP circuit will give up to 13.5 % increased recovery
but what is the cost vs the gain its all relative i'm sure all this & more is being
considered .
First priority sustainable production with a healthy margin implemented in a cost
effective manner -justifiable economics 101.
gltah-imo
salt
OGX Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
