MGR presents regular updates on it operations. Some investors assume that the lack of a release is bad news. MGR will present an update on Bumbat this week, most likely Wednesday.
At the Bumbat gold mine, head grade estimates for production can be measured:
a. In-situ geological reserves plus mine dilution,
b. mine sample grades,
c. car or truck samples,
d. coarse ore pile samples,
e. fine ore pile samples,
f. belt samples of rod mill feed,
g. slurry samples from rod mill discharge,
In addition, head grade estimates can be calculated as a function of;
h. measured tonnes throughput, measured losses in tails, and measured gravity and flotation concentrates.
At the Bumbat gold mine, recoveries are calculated as a function of the head and tails grade measurements.
Bumbat primarily used, and exclusively reported (g), slurry samples from rod mill discharge. Checks were completed using (a). If additional gold existed and were to be trapped in the circuit prior to measurement, then the head grade estimate would understate the actual head grade. Consequently, the calculated recoveries for the mill would be understated.
On January 26, MGR reported additional gold has been recovered from behind the rod mill liners. This means that the head grade estimates and calculated recovery rates will have to be adjusted upward to account for this gold. Likewise, the cash operating costs per ounce will have to be adjusted downward to accommodate this additional gold.
These figures and calculations will be presented this week, along with the status of the shutdown.
Dave |
