re: Ann: Independent Expert Validates Resourc...
Hi Systematic28, full forecast production is around 220kg per day or 210,000oz per month, we're talking about the same figures, just different units.
Very simplistically the plant seems to be running at 70% capacity to concentrate (145,000oz) but only managed 52% (109,000oz) to dore production.
Tha ball mill should get the plant to 100% forecast production in concentrate, this is scheduled for mid 2013 so production much above 75-80% can't happen. The 'Investor Update' specifies this:
"Currently ~20-25% of silver ore mined is contained in over-size material, which is stockpiled for later treatment through a ball-mill"
The issue to be solved now is getting the concentrate poured into silver dore to match the through put of the crushing circuit.
The 'Investor Update' once again actually spells most of this out. It's the 'disintergrator' and subsequent low recovery (81% as opposed to 93% targeted) that seems to be causing the low dore production (page 8).
The disintergrator is scheduled to be fixed by March 2013 and the ball mill by June 2013. The recovery issue is so far an unknown.
Forecast therefore is: now to March no exceptional production change (50-55% dore production), March to June maybe (60-70% dore production), June onwards (88-100% dore production). Depending on recoveries.
CCU Price at posting:
40.3¢ Sentiment: Hold Disclosure: Held
