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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (2859)	11/20/1998 8:48:00 AM
From: Dave R. Webb	Read Replies (1) \| Respond to of 4066

Bearcatbob I thought you had always looked at the numbers in the release, but to back up the statements in release 107. The portion of the 118 vein that was mined had an in situ grade of about 5 gpt. We anticipated some dilution on mining, so that the grade was expected to be to around 4 gpt. The amount of waste rock taken during mining and loading was higher than this, so that the grade delivered to the mill was re-estimated to be around 3.5 gpt. The approximately 20,000 tonnes treated averaged 3.4 gpt. Therefor the statement that we confirmed the reserve grade for that part of the orebody was made. The feasibility study stated that mill was expected to process 300 tpd and recover all of the gold as gravity and flotation products, and to discharge a tailing with a grade of 0.5 to 1.0 gpt. During commissioning the mill ran for 0 to 325 tpd, but steadied out at 280 tpd with a green crew. Our measured tailings grade for the treatment of the approximately 20,000 tonnes was 0.9 gpt. Therefor the statement that we confirmed the mill's treatment capacity. The mill must have its wear plates replaced at regular intervals. This can be estimated, but experience is the only reliable measure. Some plants with soft ore can go over one year between relinings. Some must reline several times per year. We opted to keep the old liners that had life left in them on the mill. It's kind of like buying a used car and replacing the tires immediately because you've been led to believe that anything short of 80,000 miles between tire changes is bad. If you buy the car and get 40,000 miles on the tires, the car must be a lemon. The liners are the mill's tires. They are expected to wear out. Sorry it looked like a positive spin to you. It was purely intentional. The mine and mill operated as planned (as best as expected during commissioning). It is foolish to place high-grade ore into a start-up operation....no one does it. Our problems were that the transition from start up to operation was severely hampered by our partners lack of funds. Dave