production targets

davo77
Post #: 3817902
Quote:
"management have stated that their initial aim is 100k oz per annum, ramping up to 200k oz mid term and i think 500k long term.

going into intial production they experienced a problem with electrics/controls and as such only half the plant capacity was operational. problem has since been fixed and the ramp up that people talk of now is actually just getting the plant up to capacity and on target for the 100k oz output as planned".

Davo is on the right track, however to ramp up to target of 200,000ozs per annum there is alot more that has to be done. To reach this goal the AXM operation requires the following:
1- add another mill
2- add more biox tanks
3- add more flotation cells
4- upgrade crusher
5- add another 3.3Mva gas genset
6- upgrade H.V and L.V electricals
7- most importantly upgrade bores (more).

To carry out the further required work management have two options, take advantage of the current gold price and pour 120,000-150,000ozs this year and make a good profit or raise more funds (increasing debt or likely diluting share holding further).

The long term target of 500,000ozs will more than likely never be achieved. Just my take on how things look at this stage of the game.

Kind regards.