Here's the release
Mongolia Gold Resources Ltd -
Bumbat mill progress
Mongolia Gold Resources Ltd
MGR
Shares issued 24001373
1998-03-02 close $0.17
Tuesday Mar 3 1998
Dr D.R. Webb reports
Pursuant to news in Stockwatch January 19 1998, repair activity at the Bumbat
Mill is on schedule. As previously anticipated, production is expected to
recommence in late March. The worn rod mill liners have been removed, resulting
in the recovery of an additional 4.5 kg (145 ounces) of gold. New liners have
been fabricated, and are in transit from the Erdinet mine, 100km north of Bumbat.
As well, additional repairs to part of the mill have been started as routine
preventative maintenance. An expanded tailings storage facility has been designed,
and continuing test work is being completed. Construction is not expected to start
until weather conditions are more favourable, however, this will not prevent a
return to operation.
1997 Gold Production
Previously reported production statistics for 1997 have been compiled during the
above mentioned maintenance, and complete assay data. The production statistics
are as follows:
Total tonnage
milled 19,032 20,935
tonnes tons
Gold recovered
in the gravity
circuit 37.5 1,206
kg ounces
Gold recovered
in the flotation
circuit 9.6 308
kg ounces
Unrecoverable
gold (tailings) 17.3 557
kg ounces
Reconciled head
grade 3.38 010
gpt opt
Measured tails
grade 0.91 0.03
gpt opt
Recover 73%
Up until now, mining of ore at the Bumbat has concentrated on the 118 vein
where the mined portion of the vein was estimated to grade 5.8 gpt. An internal
dilution of 44% has been calculated, resulting in an in-situ grade of 4.03 gpt. The
planned dilution of an additional 10% during mining would have resulted in a
broken ore grade of 3.66 gpt. The calculated head grade reveals a mine dilution of
6% over and above the internal and planned dilution. Dilution is largely due to
waste within the quartz vein that was to be removed from the ore during mining.
Improved training, better turnaround on mine samples at the assay laboratory and
changes to the mining plan will reduce this internal dilution to 15 to 20%. Mining of
higher-grade reserve blocks at the south-end of the 118 vein will also benefit
operations.
During this commissioning period, total operating costs (direct mining, engineering,
surveying, sampling and plotting, loading, hauling, dumping, processing, recovery,
shipping, marketing costs) for 1997 are estimated to be US$310,200 (excluding
taxes, depreciation, and head office costs). For 1997, the total gold recovered
and sold, or in inventory to be sold is 47.065 kg (1,513 ounces), produced at a
cash operating cost of US$205.01 per ounce.
The company is pleased with the operating costs at Bumbat and expects further
reduction of costs as dilution is better controlled and higher-grade reserve blocks
are mined. The company is also pleased that the reconciled head grade for the
1997 production corresponds well with the reserve block model. The overall
dilution is above plan and will be reduced in 1998. The recovery rate is below
plan, largely due to the lower than planned head grade. An increase in the head
grade will effectively increase the recovery rate as the gold concentration in the
tailings is within design specifications, and cannot be significantly reduced.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
