I have spoken to the company today and it seems that everything is going as per previous announcements. The company awaits the recommencement of mining at Talang Santo late November and that further UG exploration is continuing at Way Linngo. Since Telang Santo recommencement is a price sensitive event I expect that a prompt ann. will be made then.
IMO, it looks like Talango Santo will supply 300 tons/day complemented by Way Linggo at an extra 100 tons/day. Although Telang Santo's silver content is lower than Way Linngo, the complementary Way Linggo feed is likely to contain significantly higher silver ( my surmise)
If the average grade is 10 g/t au ( incl silver credits) then 400 ton per day should produce about 47,000 ozs p/a which would be better than last year. According to the previous report, it will be March before this type of production is resumed. With the QE3 likely impact on the POG, things post Mar 2013 are looking prosperous.
With kind regards moorookamick
KRM Price at posting:
82.0¢ Sentiment: LT Buy Disclosure: Held
