"The FY2013 guidance does not provide for any underground production beyond the current trial mining exercise at the Cock-eyed Bob gold deposit.
However, the trial mining is progressing very well and it is expected that a parcel of 40,000 tonnes of material will be batch treated in October and recovered gold reconciled against forecast production.
If, as expected, the trial is successful, Board consent would be sought to continue underground production from Cock-eyed Bob and to commence underground development of the Santa gold deposit early in 2013."
Released to the ASX on the 22nd. June.
My comments:
Gold production guidance for 2012-2013 is about 100,000 ounces. As the trial underground mining is "progressing very well" and is "expected" to be "successful" it follows that gold production in 2012-2013 is "expected" to be comfortably above 100,000 ounces.
I do not believe this is priced into the IGR share price - nor the increase in mine life that will result from successful underground mining.
IGR Price at posting:
38.0¢ Sentiment: Hold Disclosure: Held
