going forward into the next 3-6 months gold production is going to escalate dramatically.
Pearl Croydon will operate as an open pit that is estimated to deliver 4,500 tonnes per month / 13,500 tonnes per quarter. Grade is estimated at 2.9 g/t (but also includes some higher grade zones that may be mined first to build up cash flow). Assuming a grade of 2.9 g/t au and recovery of 92% produces monthly gold output of 387 ounces per month / 1,162 per quarter.
Underground mining operations. ORS has already removed the first 2,000 tonnes from the main drive that covers the first 38 metres of the Eaglehawk Reef, and with dilution is estimated to carry a grade of 9 g/t au, and recovery of 92% is 534 ounces of gold.
Assume that ORS will immediately turn to the Western Reef and strip out the first 30 metres that has been sludge hole drilled for an additional 1,200 tonnes at 6.8 g/t au (sludge hole sampling), and recover 242 ounces of gold.
June quarter then looks like 1.5 months from Pearl Croydon for 580 ounces, high grade stockpile from Eaglehawk for 534 ounces and Western for 242 ounces for a total of 1,356 ounces. Processing costs forecast at $1.1M for a cash cost of $811 per ounce, and produces a free cash flow of $771,600
In the June quarter entails processing of 9,950 tonnes from new sources, and possibly several thousand tonnes of low grade tailings that have been previously stockpiled that adds to total production and more cash flow.
This is an optimised view going forward, and does not take into account that ORS will probably have to hire an additional underground mining team and do additional drilling and development work along the Eaglehawk and Western Reefs on an expedited basis.
ORS Price at posting:
4.9¢ Sentiment: LT Buy Disclosure: Not Held
