Production Ramp up Progress

A recurring theme here for many weeks has been " why is the company not reporting production progress".
But right under our noses BLK gave current quarter production details on Page 5 of their Interim Report, dated 13/3 a week ago.
Getready highlighted this info at the time, plse see below.

In particular: "Over the last 4 weeks the grinding circuit has operated on the Matilda ores and Golden Age ore at an average throughput rate of 4,701 tonnes per day in excess of the feasibility rate of 1.7Mtpa."

So we know that by the middle stage of the current quarter, Q3, for the last 2 weeks of February and first 2 weeks of March the plant was operating at an average throughput of 1.7 Mtpd which was the target rate in the feasibility study. Optimisation is continuing and could reach 2.0 Mtpa.

So from Jan 1/17 for approx 6 weeks the plant was producing less than 1.7 Mtpa.
From mid Feb for 4 weeks the plant was producing at 1.71 Mtpa. (4,701 ton per day x 365 days/year)
From early March for approx 3 weeks the plant will be producing at a rate above 1.7 Mtpa (continuing to ramp up and optimise).

For Q3 as a whole let's assume the plant will be operating at an average rate of 4,701 ton per day.

Also we know recovery has been on an improving trend incl 93% in Jan and 95% in Feb, so likely 93-95% in March. This a very high level and unlikely to be improved on.
Let's say the average for Q3 is 94%.

Missing info is the grade. Ore is coming from Matilda open pit with a mix of higher grade from Golden Age underground. TSI Capital assumption is 2g/t to 2.5g/t.

If we take this assumption we get:
Q3 production: 90 days @ 4,701 tpd x Grade 2.25 g/t x 94% recovery = 423 Kt x 2.25 = 952 Kgm x 94% = 895 Kgm /31.103 = 28,700 oz
So Q3 production at the half way mark is running at a rate of approx 28-29k oz/qtr or 115k oz/year.

This compares with TSI Capital calculation for Q3 production of 26k oz made in early January.

The company has answered these questions here in its own way. Obviously it could hit an unforeseen problem in the remaining weeks of the quarter so is not prepared to give any assurance of what any monthly figure has been or what the final number will be. No gold producer will give you that!

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(Page 5 Interim report) Wiluna Gold Plant
Crushing circuit
Crushing circuit availability of 65% was achieved during the December 2016 quarter which impacted mill throughput.
The low circuit availability was caused by mechanical issues and operability of the secondary and tertiary cone crushers.
The secondary crusher had components replaced in November and a new tertiary crusher was commissioned in
December. The crushing circuit during March has operated at 80% utilization and averaged 5,300 wet tonnes per day
exceeding the feasibility assumptions.

Grinding Circuit
Every month since commissioning milled throughput has improved. Over the last 4 weeks the grinding circuit has
operated on the Matilda ores and Golden Age ore at an average throughput rate of 4,701 tonnes per day in excess of
the feasibility rate of 1.7Mtpa. Management continues to optimize both the crushing and milling circuits with an
objective of reaching a throughput of 2.0Mtpa – 15% above nameplate capacity.

Leach and Elution Circuits
The leach circuit is working very well and total plant recoveries are strong. Leach, reagent and feed blend optimisation
is ongoing with the aim of improving total production further.
Nov-16 Dec-16 Jan-17 Feb-17
Plant recovery 91% 93% 93% 95%

TSI Capital calculations
http://www.abnnewswire.net/press/en...-Off-as-Expansion-Study-Draws-Near-86318.html