Bluestone you are correct, South Africans are the best miners in the world when it comes to the mining of narrow vein reefs which is ideally undertaken via small scale air-leg orientated mining methods. These methods are labour intensive and yield small tonnages but dilution is kept to a minimum. These labour intensive methods require a large labour force to obtain any significant tonnage.
That is why gross labour costs for gold mines in South Africa are almost on par with Australian mechanised (diesel driven equipment) mining operations which would have drasticaly smaller workforces.
My point is the South Africans preserve the high grade by using mining methods which minimise dilution, where as citigold is utilising a longhole slot stoping production method which is basically a narrow version of a mining method used for extracting dispersed/large tonne/ medium -low grade orebodies.
Their production figures are abysmal and their dilution must be extreme.
I believe Citigold is mining tonnes (and not many of them) when it is ounces that pay the bills!
I believe they are conserving cash based on a go slow policy due to the long lead times associated with bringing on another mine and the low tonnage of ore associated with this type of deposit.
If they do have 10 000 000oz why havent they started the 2nd or 3rd mine, there is going to be a massive lead up time now due to the massive amount of development required.
Warrior is getting deeper and there doesnt appear to be any significant results from any of the step out drilling.
What other producing gold mine has has four permanent diamond drill rigs operating without the reporting of any results!!!
Add to My Watchlist
What is My Watchlist?
