Core Gold AGM 4) - Question Period A - Operations
At Core Gold’s AGM, questions were answered following the CEO Address. Regrets are expressed here if some previous posts about the AGM were more upbeat than readers were ready for. However, there does seem reason to be in a favourable mood - Core is doing well, and a real strategic process, assessing finance and investment options, truly does seem in process.
Production
Regarding production, Sam Wong informed: “I think we’re steady at say 1500, 1600 ounces in a month.”
Ore is being mined and transported at about 500 tons/day, per Core’s press release of September 9. Kuscan’s weekly updates have seen 340-380 ounces/week produced recently.
With gold at $1400-$1500, the impression is that the company is at about the level of making a modest profit overall. Q3 results are awaited, but overall Mark Bailey said that the bills are being paid.
The crushing circuit at Portovelo operates most of the week, as ore is delivered and needed. The CIP process circuit is continuous, maximizing recovery.
Cash and Debt
Regarding cash on hand, Mark Bailey commented, “we’re stable - obviously we’re helped with $1400-$1500 gold”. End-of-Q2 cash was $300k. Net funds generated are employed for the strategic process, paying debt and drilling. Debts to Credipresto, Accendo Banc and Robert Washer, and part of the 30% short-term loan have been eliminated.
Below - Core owns extra ball mill cylinders at Portovelo, which could be used for expansion or another mill.
Kuscan
Mark Bailey and Sam Wong described points of value that Kuscan brings as a logistics company, mostly to do with accounting. With weekly reporting there is a closer handle on production and financial statistics.
Kuzcan also has a person dedicated to community relations. Those were very good under Keith Piggott, and with Core’s good track record this aspect is worth investing in.
Drilling
Core Gold’s press releases including that of September 9 describe their current drill programs at Dynasty and Copper Duke. A few thousand meters are planned. Some have speculated on confirmatory drilling happening as well, given the experience during the process with Titan and others in the Spring.
Below - conveyor to ball mills.
Heap Leaching
Success was registered with heap leaching pilot projects to date. Carrying out the next scale of bulk sample processing is on hold awaiting sufficient funds to engage a long-experienced independent reviewer. Mark explained that would be necessary for government approval of a full-scale operation.
Portovelo is already permitted and laid out for heap leaching of a large bulk sample. In the region, heap leaching may be considered safer than tailings dams.
Jerusalem
The Jerusalem concessions were somewhat lost for a period time in the shuffle between recent governments, and with Core’s prior difficulties switching from underground to surface mining. Sam Wong informed, “We’re still in the legal process of getting that back” and Mark Bailey added, “We’re close.”
The Jerusalem concessions are located only 30 km south of Lundin’s massive mine opening just now at Fruta del Norte, and contain the best ground among encircling properties in that area.
Below - impeller in process tank.
Mining Opportunities
With the board burying the hatchet, it’s possible think more broadly about how its talent could be used. Keith Piggott achieved higher rates of production than Core is running now, even if nearly the same gold ounces are being produced. Higher-grade ore in the range of 6-13 grams/ton is available at surface at Copper Duke, Linderos and Papayal. If the willingness to work together that is in evidence now, could be brought to Core’s mining as well, Core could again mine 750 tons/day or more vs. 500 tons now, with the added benefits of producing to higher grades and a higher gold price.
Press Releases
Shareholders are encouraging Core Gold to communicate well and more often. It was helpful to shareholders to read that 17 firms had signed Confidentiality Agreements, and 9 had been or will be on site visits. As news on the strategic process is likely to wait until the first phase it closed, the more news to shareholders and the market, the better.
Below - rear of ball mill.
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