Phone translation via google..... Those responsible for Orinoco...

Phone translation via google.....

Those responsible for Orinoco Gold (WKN A1J7HQ / ASX OGX) can report further progress in Brazil. Meanwhile, the third hammer mill has been built there on the Cascavel mine. This has a capacity of 25 tons per hour, but should initially be operated at half capacity.

In March, the hammer mill was already in operation for 7.5 days. During this period, the mill was charged with 640 tons of material. This included tailings, low and middle grade ore and mine development material. This resulted in 6.4 grams of gold per tonne. The output rate is almost 84 percent. Converted on those March days 131 ounces of gold were produced. For comparison, with previously used gravity mills, the application rate was between 73 percent and 80 percent, the gold content was between 1.6 grams and 2.1 grams per tonne. The modified mill strategy thus has a clear effect.

According to Orinoco COO Richard Crew: "Cascavel and our hammer mill strategy are promising. Hammer Mill 3 has proven that the gold can be released at a low cost. "


The hammer mill 3; Photo: Orinoco Gold

When the hammer mill was put into operation, there were some small setbacks, which should not be overstated, Orinoco said. So parts of the device failed, it took a while until spare parts were on site. The problems are now almost all solved, in May, the mill should go into regular operation. This will be the first full month of commercial production.

And there is a lot of work for the mill. At Cascavel, more than 5,400 tonnes of a mixture of low, medium and high grade ores and mine development materials await processing. So far, all this material is unused on heap. In addition, a further 1,041 tonnes of mostly high-grade ore are waiting underground for transport and further processing in the mill.

The fourth hammer mill will arrive on the site in May and then slowly be integrated into the processing cycle. This fourth mill has a capacity of 50 tons per hour. It will run on diesel, unlike the other, electrically operated hammer mills. This increases flexibility and makes it easier to transport to other areas.

The restructuring of Orinoco Gold is almost completed. Those responsible assume that this can reduce costs by 30 percent. Another advantage for Orinoco is that you can profit from the weak Brazilian Real. Most of the company's cash reserves are held in Australian dollars. Thus, the company can also achieve currency advantages, also the gold price in real terms has recently increased by 12 percent.

At the moment, environmental compatibility work is also being launched by Orinoco. Drawing for the explosives warehouse are ready. All work should be completed by the end of July. Results of the recent drilling could be pending soon. And in May, further drilling will start on both Cascavel and Cuca. At the end of May, drilling is also planned on Sertao, an area 25 kilometers south of Cacavel. For Orinoco, these are busy weeks