GREY:HRIVF - Post by User
Comment by
discern1on Apr 01, 2011 12:56pm
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Post# 18373784
A huge 1Q coming up
A huge 1Q coming up
Although, I have heard some comments regarding the high production cost per ounce, I don't think anyone has mentioned the main reason why costs explored at the Berezitovy mine.
First of all, the second ball mill was installed but was not optimized until late 4Q.
Secondly read the MD&A (I have bolded the important part)
Berezitovy Mine, Russia
The second ball mill was successfully installed at the end of Q3. However, due to the problems with the
first ball mill and the crushing unit, the plant availability remained below planned level in 2010. The second
crushing unit was ordered in 2010. The increased cost of production is due to aggressive stripping activities and
increased level of mining activities in 2010. A large stockpile was built to maintain a constant feed to the processing
plant
Even though the crushers and mill weren't working, a large stockpile was built and land was stripped for future mining.
With the second mill up and running in 1Q, it is likely we will see double the amount of production that 4Q.