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Thanks for that BondThe only thing I'd point out with your...

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HairyRichard

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25/11/18

13:28

Post #: 36631962
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Originally posted by BondJamesBond: ↑

I've used the 8 day trial results + previously reported tailing's results from HM2 to work out what the potential production from tailing's could be using the 400kg mills & how many would be required.
Bear in mind that this is only potentially achievable as it doe not take into account all the variables.
It's assuming that the 8 day trial can be duplicated on a consistent basis.

on date 31 January 2018 through our Hammer Mill 2 that averaged 4.75 g/t, 9.72 g/t, 9.86 g/t,10.14 g/t and 11.90 g/t That's an average of 9.27 g/t for the tailing's

• Trial run of high grade ores using our smaller Hammer Mills 1 & 2 over 8 days of 12 hoursper day yielded 1209.33 grams of production from 72 tonnes of ore at an average grade of16.79 g/t. According to the trial run results they can run about 9 tonnes p/ day

So if the tailing's are 9.27 g/t, then they could produce 83.43g p/day= 2.97 oz

This is over an 8 day trial, so the question is how consistent could they be over an entire month allowing for maintenance, breakdowns etc.

Let's say they were able to achieve this rate over 22 days in a month, they could produce- 65.5 oz with the current 2 small HM's.
(The 400kg mill pulls 69% of the weight & the 125kg mill contributes 31% of the production currently)

Each 400kg mill could potentially produce- 45.2 oz p/month (using 9 tonnes p/day)

3 x 400kg mills= 135.6 oz + 125kg mill= 20.2 oz p/m= 155.8 oz p/m

Put it this way: If they wanted becoming cash-flow positive (Achieve 650 oz p/m), solely relying on tailing's & no high grade ore, then it would take 14.3 x 400kg Hammer mills to do it.

But that's assuming that they could run 9 tonnes per day consistently over 22 days in a month.
If you take a 25% reduction off that (for maintenance, breakdowns etc), then they would need to add another 3.5 mills

So 17.8 lets say 18 x 400kg mills could potentially solve the cash-flow positive problem solely on the tailing's.

I think this is all right. If anyone finds a mistake, let me know.

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Thanks for that Bond
The only thing I'd point out with your working out is that you took 8 days per month off for breakdowns etc and then a further 25% off that again for breakdowns etc
It's probably no big deal because from memory the hammer mills don't recover 100% of the gold anyway so it's probably not quite 9.27g/t

OGX Price at posting: 1.0¢ Sentiment: None Disclosure: Not Held
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