The fact that the FL ore body is seemingly reconciling well against the reserve model, and that development has progressed ahead of schedule and under budget, suggests that the early stage mine-development risks have been successfully managed, although it will probably be another 6 months before we can be more confident that the Mine is likely to perform as advertised.
With the increased number of mining surfaces and hauling capcity, they should be able to mine 35-40,000 tonnes of ore a month, giving 4 to 5 milling campaigns a year (assuming they stick with 100 kt, one month camapaigns). I would expect that the second and third campaigns should produce around 15,000oz each, but this is only a guess.
I would expect DIO production for the May quarter to be similar to that for February, but the August quarter production should be higher assuming they process the Mt Marion ore and have a another FL campaign.
My thoughts only, could be way off the mark.
angus
DIO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
