hey, scotty......that is a a good laugh. hehehe
anyways, as we bide our time here is an article to make the stubborn & die-hard pessimists of victorian gold miners blink (twice).
http://www.proactiveinvestors.com.au/companies/news/2302/northgate-minerals-canadian-owner-of-old-victorian-gold-mines-sees-major-turnaround-2302.html
The new Canadian owners of two of Victoria's gold mines - Fosterville and Stawell - have projected higher total production for calendar 2009 of 206,500 ounces under a turnaround programme at both sites.
Three years ago there were questions whether Victoria, the country's great producer in the 1800s, would remain on the Australian gold production map.
The executive general manager of Toronto listed Northgate Minerals, (TSX: NGX), Luc Guimond, told the Paydirt Resources Victoria Conference both mines were improving both in terms of productivity and in terms of lowering costs since the company's acquired them in last year.
"Under the previous ownership, both mines were under-capitalised which prevented them from operating efficiently and from developing additional reserves through exploration in what is a prolific gold mining region," Guimond said.
"The turnaround at Fosterville particularly has generated higher gold recoveries year over year while at Fosterville, cash costs have come down and trending downwards by the opening quarter of 2009," he said.
"Fosterville has delivered around 25,500 ounces for each of the opening quarters and we are expecting around 31,000 oz for the current September quarter and around the same for the final December period for a total of 110,000 oz at an average cost of A$500/oz (US$412/oz).
"We expect much the same for this full year for Stawell which generated 22,392 oz in the March quarter, 20,066 in the June period, and we expect around 24,000 oz this quarter building to 30,000 in the final period for a year total of 96,500 oz at A$510/oz (US$420/oz)."
Guimond said gold recoveries at Fosterville had moved to 86% from 65% in the opening half of last year with a dramatic decline in cash costs - from A$1,207 (US$995) an ounce to A$483 (US$398) currently.
"We are looking to push that to 90% recovery levels with new systems and equipment contributing to the mine's increasing production profile."
The Fosterville mine was a 1,700 hectare mining lease and there was potential for primary sulphide mineralisation under 21 previously mined open pits, with a drilling programme instigated last year already adding 150,000 Measured and Indicated resources at 4.01 grams/tonne gold.
Further infill drilling work would continue to explore the full extent of the mine, particularly the Harrier and Osprey gold lenses. The Harrier deposit is potentially scheduled for mining and production by 2012.
Northgate has also invested in infrastructure and equipment at Stawell - lifting mine life by a further 18 months, easing cash costs, and improving mine productivity to 2,016 tonnes per day ore milled (tpd) from 1,855 tpd previously.
The company is also currently elevating the height of Stawell's existing tailings dam to extend the mine's capacity by five years.
"We have taken Stawell from closure mode to renewed life and will continue to target an increase in reserves in the Golden Gift ore bodies and Magdala trend as there is potential to find additional reserves that can be mined at low development costs."
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