At the meeting, I questioned the current mine output(75-80 tpd), headgrade at the mill(1.1-1.2 %), and recoveries (>90%).
Also asked the question regarding whether an upper bounds on the headgrades that could be Processed Properly had been established. Recieved a number of replies on that one, most useful of which was that Mr. Aveson let me know that their current target grade is in the 1.6 -1.8% range...via mixing for steady state production. Also was informed that >2% moly requires slowing the process to achieve adequate thickening/drying...current pinchpoint....Sounded like something that possibly a filter-press could resolve.
Reasons for asking this question:
- I wanted to know.
- It allows you to calculate production estimates.
- I was informed last year that they "may" consider running the process to maximize cashflow for a period of time.
I questioned regarding the high grade moly occurences and whether these continue to be encountered...Replies included the fact that these elemental moly occurence seem to run in the 40- 50 ton range, and that although we are currently working through a stringer vein portion of the deposit,(which pinches and swells), that more of those high grade occurences lie ahead of us.
Underground mining progress was stated as being around 6 feet per shift, 12 feet per day, and requiring extensive shoring...at a cost of $700-900 per foot.
Drilling progress was reported around 300 feet per shift at a cost of $20-30.00 per foot....estimated at 1/2 to 1/3 the cost of using outside sources. Depths have ranged from 150- 1200', both infill and stepout holes have been completed.
Grades of currently accessible resources include:
1.8 million tons on the pad @0.015 opt
0.2 opt in the Drinkwater pit
0.08 opt in the pits.
Burn Rate
Here' what I heard:
operational ...roughly 1 million/month
corporate..roughly 180-200k/month
Do the math and that comes to a little over 14 million/year. Seems to fit previous looks/estimates I've made from the filings of about 14 million/annual....Now the drilling CREW and exploration costs, seems to be running around 450k/quarter...extrapolate...1.8 million/year according to the last filing....may be the reason for some confusion/discussion.
I questioned the 6 month $1,026,000.00 expenditures under the category of Construction in Progress. I was informed that this included the new tailings impoundment/containment, new rolling stock..ie mucker/loaders/haul trucks, and upgrades to the electrical sytem including new lines and transformer upgrades. |
