You're right, probably closer to 12 g/t that DR mentions in his 2005 presentations. I was just trying to be conservative. Silly me.
So yes, 0.30 oz/T is possible. Historical was 5 g/t; but I attribute that to "exploration drilling using the jumbo bit" and mining method selection based on equipment available.
I guess the problem with the (SAS owned) Stock mill is that it needs 3,000 tpd to be run efficiently. The Apollo solution, if they cannot "retool/rejig" Stock for 1,500 tpd is to provide 3,000 tpd. This would mean custom mill the Phase I (1,000 t/day of 12 g/t from u/g to the 280m level while Phase II is being prepared, i.e. removing OB and waste rock for tailings embankment, roads & infrastructure foundations in Year 1).
Then there is a transition point where the U/G to 280 m ore and the Open pit ore has to add up to 1,500 tpd. Meaning a combination of own mill (say for OP and custom mill for the U/G to 280 m level) with Phase III (below the 280 m level) once the shaft and VentX/Escapeway is established.
Problem is in back calculating 150,000 ozs produced annually, using the Aug 14, 2006 SEDAR data suggests that Phase I would have to be from U/G to the 280 m mark (1,000 tpd @0.30 oz/T, 97.15% recovers over 360 milling days). The SEDAR report shows an open 1,500 tpd open pit operation with a MHG of 6.8 g/t. Shaft for Phase III could be done concurrent to Phase I; but no later than Phase II, for sure.
Exall/CMD always had the OP option but opted for the U/G to 400m ramp/decline access option.
My thinking is that they the could be in an enviable position where they can use the MTMI cash flow and warrants exercise to start up Black Fox without doing the U/G to 280 m Phase I and wait for their own mill on Jan 1, 2009. However, I'm thinking that a better way to expedite things could be to resume production at Black Fox is to mine the "easy stuff" first. At the very least provide a contingency (diversification) for MTMI. Remember that we're ~2 years behind in developing Black Fox, IMHO because despite the cash flow diversification that they sold the market on back in 2002/3 did not materialize.
I think the sceptical/fickle mining market are not convinced that they're well positioned to get out of the dog house with institutional/retail investors by making "over delivering" announcements after the ORR summary is released in 10 trading days (or less).
Wildcat have any milling capacity that Apollo can use?
Cheers
Winzer (Stanley on Stockhouse.ca) |
