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Tagged with: Reports

Apr 2008 - Mundo Minerals

Mundo Minerals Limited (MUN) – Bringing its Engenho Gold Mine in Brazil into Production Initially at ~35,000ozpa from May 2008

  • Mundo Minerals Ltd (MUN) currently has three gold mine project areas in Brazil and Peru, being its Engenho gold mine in eastern Brazil (about to start production), its Torrecillas mine in southern Peru (in which it is establishing resources), and the Tocantins area of central Brazil (has a range of opportunities).
  • MUN is a growth story. Although its NPV is A$0.33 based on ~35,000ozpa from Engenho at US$900/oz, if US$950/oz, a higher throughput of 300,000tpa and a grade of 6g/t are achieved (~54,000ozpa), then the NPV is ~A$0.80 (assuming normal tax, if MUN qualifies for Presumed Tax, then add another ~20c). MUN’s target for Engenho is 50 to 60,000ozpa, which appears to be achievable especially with the geochem progress near Mazoca and other possible satellite sources.
  • MUN also has mid-term production targets for Torrecillas of 50 to 70,000ozpa and ~110,000ozpa from Tocantins. And there is the new project of Jaquiera, (near Jacobina, Bahai) in NE Brazil which is currently under a new option and rapid evaluation, as it also displays the preferred characteristics of an old goldfield, proximity to infrastructure and towns, and a non-malarial prone area.
  • MUN is currently driving a ramp and developing a cross-cut in the Torrecillas mine near Chala in southern Peru, to improve the production and access capability compared to the current climb-in incline. Historic average grades on small 1,500 to 2,000ozpa production were ~ 20g/t to 30g/t, although they range from 8g/t to 300g/t over different widths of 20cm to 2m both along strike, and up and down dip.
  • The increase in the width of the Torrecillas footwall vein to ~2m with grades ~2oz/t (59g/t) on the lowest level (No 12, or 2580m above sea-level, only 120m below surface), offers encouragement in the stacked lode system to achieving a 150,000oz resource target before starting a PFS to re-commence mine production.
  • At Tocantins in Central Brazil, MUN has a number of projects/prospects ranging from active and historic garimpeiro (artisan) workings, to greenfields exploration. Grades vary as do the opportunities for open-cut or underground operations.

May 2008 - Silver Lake Res

Silver Lake Resources Limited (SLR) –Building up to >70,000ozpa Gold Production by the end of 2009

  • Silver Lake Resources (SLR) has four project areas in WA, being Mount Monger (which includes Daisy-Milano : a high grade underground mine that has started production at an expected ~35,000ozpa), Murchison (being Comet, Tuckabianna & Moyagee), Rothsay (a small copper-gold mine) and the grass roots Copper Lakes.
  • SLR has a target of producing at 150,000ozpa within 3 years (2011), which could be achievable, based on possibly 50,000ozpa to 70,000ozpa from Mount Monger and a mining operation at Comet/Tuckabianna (although Mount Monger could be capable of achieving 100,000ozpa in its own right).
  • SLR appears to have significant upside potential with both of its current main project areas of Mount Monger’s Daisy-Milano, and Comet/Tuckabianna apparently capable of exceeding expectations in production and grade. Also on a market cap comparison basis to its peers, SLR appears to be well undervalued and capable of achieving a market cap > A$120m.
  • SLR poured their first gold bar on 30 April 2008, at their own 300,000tpa Lakewood plant near Kalgoorlie as part of an initial expected treatment rate of 75,000tpa at 15g/t (35,000oz to 40,000ozpa) from the Daisy-Milano lode. The remainder of the mill capacity is expected to be fed from possible open cuts followed by underground mining one of the >10 other lodes that have shallow workings.
  • At Comet and Tuckabianna, SLR are evaluating re-opening the mines as underground operations, which was considered prior to their closure in 1997, but not undertaken due to the weakening gold price and other distractions. SLR has started a PFS on its Murchison assets (Comet, Tuckabianna and Moyagee) which it expects to complete in the December Quarter 2008.
  • SLR are also evaluating the old Rothsay copper-gold mine that closed in 1991, after limited underground operation, and their Copper Lakes prospect.

Aug 2008 - Panoramic Res

Panoramic Resources Limited (PAN) – Establishing a Company with a life of 10 to 15 years producing ~15,000tpa to 20,000tpa Nickel, that has Significant Upside Potential

  • With both Lanfranchi (LNM)’s Deacon and Kimberley (KNM)’s renamed Savannah orebody both open at depth and growing in width and on strike, the renamed Panoramic Resources appears to have the capability of establishing a company with a life of at least 10 to 15 years, producing ~15,000tpa to 20,000tpa Nickel.
  • The orebody at Savannah appears to be significantly changing and improving at depth with higher widths (possibly >30m thick), different nickel mineralisation styles, and often higher grades (nickel, copper and cobalt) than the Upper Zone of the orebody. Which could result in production of ~0.9mtpa from Savannah alone, a longer life, and at higher grades.
  • The potential size of Savannah has been aided by the delineation of the Northern Ore Zone at the western end of Savannah making a T-bone shape with the Main Zone, which increases the potential strike length of the Lower Zone (there was a non-JORC resource of up to ~80,000tNi in the Lower Zone [below the 500 fault]).
  • Savannah currently receives significant by-product credits of ~A$4.00/lb to A$4.20/lb, which should increase with the higher copper grades towards the west and at depth, especially if KNM also needs to produce a copper concentrate.
  • There is also significant exploration upside potential at Lanfranchi, based on a number of target areas to be EM tested, plus the possibility of replication under the northern dome, having established a “hangingwall” position of ~2m @ 7%Ni.

Oct 2008 - Albidon Limited

Albidon Limited (ALB) – Increasing Munali’s Production beyond 10,000tpaNi

  • Albidon’s share price closed at A$0.56 on 10 October 2008, only 6c higher than its 50c listing price in March 2004. During the past 4 ½ years, Albidon discovered one of the world’s lowest cost nickel mines in Zambia, financed, constructed and brought it into stoping production by September 2008. Even at the current nickel price of US$5.2/lb, Albidon has an NPV 3 x its current share price, at A$1.70/share.
  • Albidon has announced an expansion from 0.9mtpa to 1.2mtpa using the available capacity in the circuit, being the flash flotation (expected 16% to 20% recovery) and additional tanks, raising nickel production to ~10,000tpaNi from MQ 2009.
  • Although the initial stoping grades appear likely (as expected) to average ~1%Ni, the southern end of the orebody appears to be much richer (at ~2% to 3%Ni) being different nickel mineralisation (similar to PAN’s Savannah) comprising of small country-rock breccia fragments in massive nickel (that may plunge northwards).
  • ALB is undertaking a number of studies aimed at increasing production, such as DMS of the lower grade 0.3% to 0.5%Ni fraction (doubles the grade before adding it to the main mill feed), sinking a decline into Voyager (and probably linking to Enterprise North for greater flexibility), and examining possible open-cuts at Intrepid and elsewhere on the current northern extremities of the intrusion.
  • There appears to be increasing evidence that the intrusion and the orebody plunges under limestone cover to the north. Recent geophys has identified possible deeper extension targets to the north and a possible faulted block to the south, both of which are expected to be drilled during December Quarter 2008.

Nov 2008 - Golden Tiger

Golden Tiger Mining NL (GTX) –Seeking JV Farm-in Partners

  • Golden Tiger has made significant exploration progress during the past year and has delineated at least one company-making project area, being a porphyry-copper target at Shuilong, a possible Carlin target and other gold mineralisation at Weilong, vg in skarn mineralisation and other possibilities at Pinghe (the historical GTX original drilling mostly missed it), and other potentially promising targets.

Mar 2009 - Kingsgate Cons

Kingsgate Consolidated Limited (KCN) –Building Chatree up to >200,000ozpa

  • Kingsgate’s Chatree gold mine in Northern Thailand has now received all its required approvals to mine Chatree North and commenced blasting its “A” prospect in mid-January 2009. At a throughput rate of 2.4mtpa, the expected average grade of ~2g/t results in production of ~140,000ozpa gold and some silver credits (~0.6Mozpa silver or an additional ~10,000ozpa gold equivalent).
  • However, initial grades at “A” appear capable of being >2g/t and when combined with mining higher grades (possibly >6g/t) in C-North, production could increase to 75,000oz to 85,000oz for the first half of 2009, resulting in Kingsgate achieving its ~100,000oz (+/- 3,000oz) forecast for the year ended June 2009.
  • With credit markets in turmoil and debt available at double-digit rates, we have assumed that KCN achieves its increased production through gradually extending its plant (to 5mtpa and >200,000ozpa) at a slower rate, by using its own cashflow.
  • As Chatree North still lies within the Phichit and Phetchabun provinces, the original BOI (Board of Investment approval) tax incentives for Chatree should apply (8 years’ tax-free from 27 Nov 2001, then 5 years at 15% tax), although further concessions are being sought with the increased expenditure.
  • However, the new Chokdee discovery covering a wider footprint than Chatree lies ~20km NW of Chatree in the Phitsanulok province. Hence it would require its own separate new BOI, aside from the likelihood of being a standalone operation.
  • Initial indications are showing that Chokdee has the potential to become a significant discovery, extending over 700m on strike and open in all directions. Interestingly its pyrite has the same lead isotope as Chatree, inferring that it was part of the same magmatic event as Chatree (although its gold mineralisation has some similarities & a separate visible gold-in-quartz veinset amongst the 3 lodes).

Mar 2009 - Apex Minerals

Apex Minerals NL (AXM) – Extending Wiluna Beyond A 5-year life at ~150,000ozpa

  • Apex Minerals (AXM) bought the 3 mines of Wiluna, Youanmi and Gidgee (for its Wilson’s orebody) using scrip and cash, with the intention of treating the refractory (needs biox) ores at Wiluna. Production was expected to increase from ~110,000ozpa to eventually ~200,000ozpa, trucking ore from Gidgee & Youanmi.
  • However, during exploration at Wiluna to extend its perceived life beyond 1 to 2 years, AXM made a number of discoveries including re-interpretation of the existing Wiluna orebodies, such that Wiluna currently appears capable of filling its own plant alone for at least 5 years at a production rate of ~150,000ozpa.
  • Initially AXM has focused on the almost N/S striking East Fault Structure comprised of the East Lode area in the south, and the hidden Calais area in the north. Both areas remain open on strike and at depth with more than one lode, and the complete West Lode (parallel to East Lode) is still virtually untouched.
  • In the East Lode opencut, AXM has found that the historical over-reconciliation in the pit has been due to a previously unrecognised (or historically forgotten) hangingwall orebody that lies adjacent to East Lode, and may not have been mined underground, resulting in an initial open-cut block of ~400,000t @ ~4g/t.
  • At Calais (which consists of two lenses, with the 50 west of the 100), it can be shown that the gold mineralisation distribution appears to be “shadowed” or “almost duplicated” from the 100 lens onto the 50 lens, so AXM’s new Burgundy discovery on the 50 lens may also occur on the 100 lens.
  • Wiluna does have the potential to evolve into a significant goldfield, as it has all the required characteristics of different ages/events of gold mineralisation, in a number of different forms, and in a range of different host rocks. Wiluna is already over 5moz in size (4moz mined already, and >1moz identified in resources).

May 2009 - Silver Lake Res

Silver Lake Resources Limited (SLR) –Taking the next step to producing >70,000ozpa

  • Silver Lake Resources (SLR) has achieved its production target of 50,000ozpa at its Daisy-Milano operation at Mount Monger in WA, currently producing a steady ~1,000oz per week with the occasional 1,500oz week. With the Christmas Flats open-cut expected to start in July 2009 and the probable expansion with an additional 300,000tpa mill at its Lakewood plant, SLR’s gold production appears to be moving into the next phase, taking production beyond 70,000ozpa.
  • SLR still appears to be on-track to achieve its 2011 production target of 150,000ozpa, possibly by 70,000ozpa to 100,000ozpa (or so) from Mount Monger & 50,000ozpa from its Murchison Project at Moyagee/Comet/Tuckabianna. Currently SLR is examining its milling opportunities at Murchison, ranging from toll-treating to having its own initially 500,000tpa to 600,000tpa mill (doubling to 1.2mtpa later).
  • Due to SLR’s current total cash costs of ~A$600/oz to A$700/oz, Silver Lake is generating significant cashflow at current gold prices >A$1,000/oz of ~A$1m to A$2m per month (its best week so far was selling 1,550oz at A$1,550/oz). This is increasingly enabling SLR to build up a war-chest capable of financing a mill expansion at Lakewood, start its Murchison operation & remain debt & hedge-free.
  • In fact in the June Qtr of 2009, SLR may have recouped its ~A$13m acquisition cost of Daisy-Milano from Perilya and the acquisition of the Lakewood plant, just over a year since first production in April 2008 (which itself was only ~6 months from the acquisition from Perilya & subsequent listing of SLR in November 2007).
  • The Daisy-Milano orebody is shaping up to be a dream orebody, with ~400m on strike of almost continuous gold mineralisation. The recent delineation of Daisy-Milano on strike at the 8 Level infers a significant increase in resources, and visible nuggetty gold is becoming common with grades in oz/t or even kg/t.

Jul 2009 - Panoramic Res

Panoramic Resources Limited (PAN) –Significantly reducing costs and capex by up to $40mpa while growing beyond 20,000tpaNi

  • In some ways, the lower nickel price has been beneficial to Panoramic, because it caused the company to have a complete review of its cost and capex expectations for 2008/9. Combined with the across the board 10% reduction in all employees’ salaries, Panoramic encouraged its contractors to do the same, which has resulted in reductions of A$1m-$2m per month on each mine (totalling ~$40mpa).
  • Panoramic’s 20,000tpaNi target may be achieved in the coming year. PAN’s forecast is up to 19,000tNi, but it really depends on what average grades come from the keel zone of Lanfranchi’s Deacon as individual grades there range up to ~11%Ni. In fact if Deacon averages ~4%Ni in one of the months in mid-2010, Lanfranchi could be producing at an annualised rate of 20,000tpaNi for that month.
  • The ~50,000tNi resource delineation of the Lower Orebody at Savannah has extended the mine life to at least 10 years based on treating 700,000tpa (~70m vertical per year) at 1.3% to 1.4%Ni for ~8,000tpa Ni (with material copper and cobalt credits). That takes PAN’s production beyond 20,000tpaNi from mid-2011.
  • Savannah appears to have been sub-horizontally injected & hence horizontally domained, so its orebody changes with depth as in the latest drillhole intersection in the Deeps covering ~10m of Ni mineralisation including ~3.3m of solid massive (Kambalda-looking) nickel ore grading an ERA expected ~ >= 2% to 3%Ni.
  • Aside from Savannah’s nickel production increasing due to higher nickel grades at depth, its production could increase by ~10% to >750,000tpa following the expected receipt of 2 spare 50t trucks from Lanfranchi (surplus due to the new six-wheeled 60t trucks), and the planned purchase of a new 60t truck for Savannah.
  • The nickel and A$/US$ exchange rate hedging undertaken by PAN has been extremely astute, resulting in significantly higher cashflows to PAN, such as the recent (MQ09) US$70m puts at US$73c paid for with US$70m calls at US$56c.

Jul 2009 - Avoca Resources

Avoca Resources Limited (AVO) –Moving into the 2nd Phase, targeting production of 150,000ozpa to 190,000ozpa for at least 10 years

  • Avoca has been advancing at a fast pace since discovering Trident in 2005 establishing sufficient ore (by June 2006), dewatering the Poseidon South open-cut and old workings by July 2007, start production, building and commissioning a plant within a year (by July 2008). And then producing ~130,000oz by June 2009.
  • Avoca has established that its 1mtpa rated plant is capable of treating ~1.25mtpa (and probably ~1.5mtpa with minor modifications) mainly due to the gravity circuit achieving ~60% of the recovery (double that expected). Which has paved the way for AVO to move into the 2nd Phase, bringing the satellites on stream such as Fairplay, Chalice, Two Boys, & Vine etc, and hence taking production into a targeted range of 150,000ozpa to 190,000ozpa for at least 10 years.
  • Avoca has given guidance of 190,000oz production for the coming year to June 2010, based on treating 1mt @ ~5.8g/t from Trident with a recovery ~97% for ~180,000oz at a cash cost of ~A$440/oz, and processing ~270,000t of low grade ~1.2g/t ore at a ~95% recovery for ~10,000oz at a cash cost of ~A$684/oz. However, the average Trident grade appears capable of being between 6.3g/t & 7.0g/t, and Fairplay may start production at ~2.0g/t possibly by January 2010.
  • The near vertical high grade Athena veins appear to be the mainstay of the Trident mine (blowing out periodically into the Western Zone) and becoming enhanced into bonanza grades when they are intersected by some of the high grade eastern flats (such as Eos) on the 1005 Level which has raised the average mine grade from ~3g/t to ~4g/t, up to ~6g/t.
  • AVO has submitted a revised takeover offer for Dioro of 1 AVO – for – 2.3 DIO (which has now been unanimously accepted by Dioro’s directors) as part of the 3rd phase strategy to increase production to ~250,000ozpa (although it appears likely to require up to two years to identify the underlying capability of the DIO assets). Avoca has a long-term stated target of becoming a 500,000ozpa producer.

Sep 2009 - Catalpa Resources

Catalpa Resources Limited (CAH) –Bringing Edna May into Production at ~100,000ozpa from June 2010

  • Catalpa Resources (CAH) has started construction of their refurbished ~3mtpa ex-Big Bell plant that is expected to start production from June 2010 and ramp up to ~100,000ozpa production at cash costs of ~A$640/oz. The expected production is based on an initial throughput rate of 2.8mtpa that increases after ~2 years to 3.2mtpa, processing ore at a grade of ~1.2g/t with a ~92% recovery.
  • The host rock is the Edna May Gneiss which contains broad low grade gold mineralisation reminiscent of Kidston, Mt Leyshon or Mt Rawdon, except that it is enhanced by higher grades within the gneiss itself and by arcuate, high grade, generally laminated quartz veins, often containing visible gold and ranging at average values of up to ~1oz/t (30g/t) or so.
  • The production forecast does appear to be conservative as historical grade reconciliations were up to ~20% or so higher (due to the extensive often higher grade mineralisation) and historical recoveries appear to have been mostly in the 93% to 95% region in the harder sulphide rock. Catalpa are using a gravity circuit which increased recoveries in the 1980s, but was not used in the 1910’s or 1940’s.
  • Most of the previous production periods stopped producing at about the 1090m RL or 245m Level below surface due to a combination of water inflow and an extensive pegmatite unit, despite drilling showing that the mineralisation does continue with grade below this zone. Catalpa’s open-cut shell goes down to the ~1150m RL, with underground stoping a possibility at depth (not yet modelled).
  • CAH is in the process of undergoing a merger with its major shareholder Lion Selection Ltd (LST, 47% of CAH) that is expected to be completed in Nov/Dec 2009 and results in Catalpa owning 30% of the Cracow gold mine in QLD, and no major shareholder. The other Lion assets go into a separate Lion vehicle, with CAH receiving gold (less costs and capex) from Cracow from August 2009.

Oct 2009 - NQM

NQM Limited (NQM) – Aiming to IncreasePajingo’s Gold operations to >100,000ozpa

  • Formed largely of ex-Normandy personnel, the management and advisers of North Queensland Metals (NQM) Ltd envisage applying their expertise to build NQM into a major 300,000ozpa to 500,000ozpa gold producer through exploration and the acquisition of overlooked/defunct/brownfields and recognised operating mines.
  • NQM’s current main operating asset is a 60% holding in the Pajingo Gold Mine in Queensland (Heemskirk [HSK] have the other 40%). The Pajingo mine is expected to potentially build up from underground and open-cuts to production of >100,000ozpa with Dotswood by the end of 2010, increase with Twin Hills to >120,000ozpa from early 2012, and head towards 140,000ozpa by mid-2012
  • Its heyday was in about 2003, after the takeover by Newmont of Normandy with high grades and wide stopes, and an expanded plant (originally for the low grade stockpiles) capable of treating ~800,000tpa. Pajingo was then producing ~300,000ozpa at cash costs of <US$100/oz at a treatment rate of only ~700,000tpa. In January 2008, NQM took it over from NEM, and reduced its throughput to ~300,000tpa, on the currently thinner ore zones, with an expected life of > 5years.
  • To fill the Pajingo plant, NQM has initially focused on two satellites, Dotswood and Twin Hills. Dotswood (previously called Far Fanning) is located NE ~180km by road from Pajingo and contains a high grade core of ~4g/t with a lower grade halo and surrounding mineralised quartz vein structures. The current expectation is production of ~60,000oz to 70,000oz over 2 years from open-cuts at Dotswood.
  • The second operation, is the old Twin Hills underground mine of BMA gold ~190km S of Pajingo that started with high expectations, but closed after ~1 year. NQM have re-interpreted the abundant gold mineralisation as a series of flats and stacked lodes, more closely resembling a stockwork with high grade shoots, lending itself to an open-cut and later underground mining concept.

Jul 2010 - Panoramic Res

Panoramic Resources Limited (PAN) – Settling into a Production Range ~19,000tpaNi

  • Accepting that production in FY2010 was lower than expected, and having given guidance for FY2011 of 18,000t to 19,000tNi, Panoramic appears to be settling into a nickel production range of ~18,500tpaNi to 19,500tpaNi or ~19,000tpaNi as shown in our/ERA production scenario forecast.
  • Lanfranchi could produce more tonnage (given it was producing at ~80,000tpm on the day of our visit, applying a revised sub-level stoping method), and grades could be higher as the mine moves into the higher grade keel zone of Deacon, while Savannah’s grades may also be higher.
  • Although Deacon remains open at depth, as do the other orebodies of Schmitz and the namesake Lanfranchi, PAN’s Lanfranchi mine continues to search for another significant orebody. A new approach has shown that the nickel mineralisation at Lanfranchi appears to be controlled both N/S and NNW/SSE, which has resulted in a number of new targets, along with the Lanfranchi West extension.
  • The intersection of 2.9m @ 3.0%Ni in drillhole KUD 810 and EM plate into the deeps below the 900 fault at Savannah opens up another extension to Savannah’s life. A drill drive is planned to be developed in the coming FY to June 2011 to further delineate the upside depth potential at Savannah.
  • Panoramic intends to have a significant exploration programme during the coming year of 2010/2011, undertaking deep drilling at Lanfranchi plus drill drives to probe the extensions of the known lava channels. While at Savannah, aside from the drilling beyond the 900 fault, a number of new near mine and regional targets are to be tested following results from the recent higher resolution gravity survey.

Aug 2010 - Avoca Resources

Avoca Resources Limited (AVO) – Becoming a >$1bn Mid-Tier Gold Company at >350,000ozpa gold with a life of >10 years

  • The recent intersections of ~50m @ 3.5g/t and 29m @ 5.0g/t in Apollo-style mineralisation ~200m north of the Trident orebody on the ~400RL have a significant impact on AVO’s life at Higginsville, inferring a life (when combined with Chalice and regional orebodies) of 180,000ozpa to ~200,000zpa for >10years.
  • At this stage, Chalice appears likely to commence production in 2H2011, following completion of the dewatering of the pit (by end 2010), and then declining down to the Olympus mineralisation. Timed to come into production as Trident moves deeper, Chalice provides increased production flexibility in the 1.3mtpa plant.
  • Following its acquisition of Dioro, Avoca announced in July 2010, that it is starting a feasibility study aimed at doubling South Kal’s Jubilee plant to ~2.4mtpa through cutting back the HBJ (Hampton Boulder – Jubilee) pit and using satellite open-cut/underground sources such as the Mt Marion (West lode) and Barbara-Surprise/Noble areas, resulting in production of >90,000ozpa for at least 10 years (Note : based on 2mtpa at 1.5g/t & 92% recovery, although grades could be higher, and also note 0.4mtpa is for treating AVO’s 49% of Frog’s Leg).
  • Avoca acquired 49% of Frog’s Leg as part of the Dioro acquisition, and Frog’s Leg appears to have a life of at least 10 years, treating ~800,000tpa (or possibly higher) at ~5.0g/t to 5.5g/t for attributable gold production of >60,000ozpa.
  • AVO is gradually working its way through the recently acquired vast South Kal assets which extend arc-like south around Kalgoorlie from the defunct Golden Ridge mine in the SE through HBJ, Mt Marion and Barbara in the SW, and which appear to contain significant upside potential.

Sep 2010 - Focus Minerals

Focus Minerals Ltd (FML) – Targeting Gold Production of >120,000ozpa for >10years

  • Focus Minerals (FML) appears to have an achievable production target of >120,000ozpa for >10 years, based on an expected 60% to 70% conversion of its 2moz resource (for 1.2moz to 1.4moz). Yet this excludes ~ 1.5mt of surface stockpiles of >1g/t (ranging up to Brilliant’s low grade stocks in SQ10 at ~2.1g/t).
  • Current ore sources are FML’s Coolgardie goldfield, the Mount, & surface stocks for FML’s recently upgraded ~1.2mtpa 3-Mile plant (operating since January 2010). With ~200,000tpa to 400,000tpa from surface stocks at >1g/t, and an expected 250,000tpa to 350,000tpa at >5g/t from the Mount for at least 10 years, the remaining 500,000tpa to 700,000tpa should be capable of being sourced from the Coolgardie goldfield (at 3.5g/t to 5.0g/t for ~120,000ozpa and an ~92% recovery).
  • FML is expected to still be in transition through to ~March 2011, as it still has a parcel of La Mancha ore to toll treat by early September 2010, and it needs to slype (enlarge) the decline at the Mount by ~MQ 2010, in order to use larger trucks. (Following its discovery that the Mount has significant upside potential for a >250,000tpa mine at possibly ~7g/t to 9g/t or so for probably >10years).
  • FML owns most of the Coolgardie goldfield, which can be subdivided into 5 areas being the two main historic areas of the TMC (Tindals Mining Centre) and the LMC (Lindsays Mining Centre) separated by the Brilliant Block, and Regional north and south. Of which current production is mostly from the underground TMC mines.
  • The TMC itself consists of an underground centre of 5 orebodies, the old Dreadnought area to the south and old workings to the east. Of which the main production area is Perseverance (discovered by FML in 2004/5), followed by Countess and Empress. Perseverance contains the relatively new “Link” structure that is expected to average ~10g/t to 20g/t (but can range up to ~60g/t).

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