"During the September Quarter we processed a 4,000 tonne bulk sample of underground ore and were shocked by poor reconciliation in grades between mine and mill data with only 3 g/t Au recovered compared to mine estimates of 10.9 g/t Au (uncut) or 5.5 g/t Au (applying a 20 g/t Au upper cut).
The ultimate outcome was that over 380 ounces of forecast gold production not realised for the Quarter, or over $0.5 million in lost revenue. This shortfall significantly impacted our financial position and eventually led to the second recently closed capital raising.
In response to this poor reconciliation in grade we have completed a thorough review of mine and mill operating performance including, a detailed assessment of underground face channel sampling procedures and data, an independent audit of the mill metallurgical processes and accounting, an independent audit of the mill site security, and a thorough investigation to test for gravity gold traps in the milling circuit.
At the end of this review we still didn’t have a clear explanation for the poor reconciliation between mine and mill data, but committed to improving processes and procedures and developing, mining, and processing a second bulk sample from the 1080 level to better assess the economic potential of the deposit."
Hints at criminal activity, but in no way delineates the parameters for the so called "detailed investigations" and who conducted them.
There's something rotten in the State of Denmark, me thinks.
ORS Price at posting:
1.2¢ Sentiment: None Disclosure: Held
