site visit report

All, a friend of mine emailed me this so thought i'd share it.
cheers


KEY POINTS:


PNA is progressing on the resolution of the low recoveries experienced mid year. Whilst the recovery has improved significantly, PNA is confident that the recovery will improve further. The specific actions already taken to improve recovery include:


The extra leach time as a result of converting two conditioning tanks to float cells

Changes to both the collector and frother reagents and combinations to allow the different minerals to be floated together, specifically chalcocite and chalco pyrite

Improved the grind size from the ball mill with full power now being applied to this mill (13MW)

Improved the grind size from the regrind mill (ISA Mill) and improved pH control

Increased management supervision for the float circuit with dedicated and experienced supervisors

Improved the ore feed with the key being targeting grade variability and PNA does have a small 30kt stockpile of very high grade ore that is blended in with the other ore

Increased the bench height to 10m which has improved the grade variability previously encountered

Lowered the concentrate grade to 20% - 22% which is still within all sales contracts but does increase overall recovery

With head grades above +0.7%Cu, PNA is being forced to slow the mill feed rate in order not to overload the float cells, but this does mean that on occasions daily Cu contained in concentrate has approached 300 tonnes and is routinely ~200t which is well above budget of ~180t required for a run rate of 16kt/quarter.

Site costs are well controlled and site management are very confident of meeting (beating) the FY09 guidance of
Of particular note, truck availability is +92% and plant availability is +90%.

Resource drilling for the Phu Kham south area is largely complete and whilst the new resource estimate will only be known early in CY10, it is clear from the tenor of the grades from the drilling that there will again be a material increase in the resource.

Greenfield exploration is re-staring with a clear focus on moving the most advanced projects forward.

The go-ahead for Ban Houyxai appears a high probability with initial site works commenced and senior management moves being planned for action as soon as the formal go ahead is given. We get the sense that the production outcome may be at the upper end of the initial scoping study ~130kozs/a.