TXRogers wrote: A while back I assisted WisGuy out in answering some questions regarding the MOY mill issue. Although I believed the original post to be fairly clear, it appears that some investors continue to dwell on a specific issue which remains irrelevant. This comes across in recent emails and posts that reveal this misunderstanding.
The prior post was as follows:
https://stockhouse.com/companies/bullboard?symbol=v.nvo&postid=31223447 “Ore was processed at the MOY 2Mtpa Golden Eagle CIL ore treatment plant (the MOY mill now in Care and Maintenance), with the ore delivered from multiple ore sources to a 150,000 tonne capacity stockpile where a front end loader re-handles the ore into a ROM (run-of-mine) crusher feed bin. Separate smaller stockpiles account for varying material hardness and grade, allowing for blending and process optimization. A two-stage expansion of the Golden Eagle plant (the MOY mill) was commenced and constructed (see the New Circuit) and to accommodate the treatment of sulphide ore. https://pbs.twimg.com/media/DdZr54LX4AAB4MF.jpg
The Nullagine area hosts a significant gold resource contained in sulphide ore, which has never previously been developed and mined due to the lack of a suitable processing route. As a result, Millennium commenced an upgrade to their existing CIL mill to process this sulphide ore. The upgrade was to involve a 2-stage low-cost expansion of the existing CIL plant:
Stage 1: In-mill oxidation to facilitate processing of pyrite/arsenopyrite-dominant ore.
a) Phase 1: The first phase is the Stage 1a, which includes concentrator and fine grinding circuit (now in operation).
b) Phase 2: The second stage is the stage 1b which comprises of the installation of the IN-mill OXidation (INOX) process as the concentrate transitions from a pyrite-dominant to a blended pyrite / arsenopyrite ore.
Stage 2: Pressurized IN-mill OXidation (PINOX) to facilitate processing of arsenopyrite-dominant ore.
Plan for commissioning was to be for early 2020, but the company went into Administration (Receivership) before realizing this goal.
In June of 2019, Millennium had announced that they had successfully commissioned Stage 1 of the Sulphide Ore processing circuit at their Nullagine mill. The company also reported that the commissioning of Ultra-fine Grind Mills was undertaken over 19-24 June 2019, with higher sulphide feed stockpiles now starting to be processed along with freshly generated product from the concentrator circuit. The company noted that concentrate grades over the previous six weeks was averaging approx. 3g/t Au. This is an upgrade of +13-times the average concentrator feed grade.
Note: This process did NOT involve any ore sorting to elevate the grades far beyond the 3 g/t Au.
So, Gold can now be recovered via the Millennium mill from sulphide concentrate under the completed fine grinding modification. Millennium said that the delivery of first gold from sulphide ore represented a major milestone for the Company, marking the culmination of detailed development studies and optimization programs completed over the prior four years.”
Novo did not purchase a mill under construction. The mill that Novo purchased from MOY is an operational mill, that MOY chose to "upgrade" in various stages. As stated in the MOY September 2019 Quarterly Report, “the Stage 1a upgrade to Nullagine Processing Plant is complete and delivering improved ore recoveries as anticipated. Table 1 on page 5 of this same report states the amount of gold produced in 2019, prior to MOY entering Receivership.
The Nullugine mill is now a Novo mill, that will undergo minor modifications for Novo’s needs (not MOY’s needs), as QH has repeatedly stated in his podcasts (ie. gravity circuit upgrade, stable water supply enhancements, mill kitchen and office camp upgrades, etc.). The approximate timelines have also been provided.
In the MOY March 2019 Quarterly Report, the company explains their reasoning for the mill expansion for the INOX / PINOX circuit modification which they believed would be “a technical and economic success”. MOY had previously announced that tests conducted on mildly and moderately refractory pyrite/arsenopyrite dominant ore samples generated gold recoveries of over to 80% using its INOX process. See ASX announcement January 14, 2019.
In the MOY February 7, 2019 ASX announcement, the company further expanded on the subject by stating that testing on their PINOX process has confirmed gold recovery of approximately of 70% from highly refractory pyrite/arsenopyrite dominant ore samples. Table 1 and Figure 1 on page 3 of this report are informative because they illustrate the reasoning behind the MOY’s INOX and PINOX proprietary process for gold recovery from their refractory pyrite/arsenopyrite ore.
Note: Refer to the claimed recovery rates by MOY in absence of the INOX and PINOX process estimates for “No additional Processing (yellow column)”, and “Fine Grinding (pink column)” on Page 3 Figure 1, which constitute the current state of the operational Stage 1a status of the Nullagine mill.
Too bad for MOY that they blew it with regards to their INOX / PINOX process goals. One man’s loss is another man’s gain.
Now, we return to the original question: What is the Importance of INOX / PINOX Processes?
The answer is simple: These Phase 2 and Stage 2 mill upgrades (New Circuit) pursued by MOY all helped put the company into Receivership, and have ultimately contributed to Novo’s ownership of the whole company. That’s the importance.
Investors need to ask themselves: Why has QH not mentioned resuming these “new circuit upgrades” as a pursuit for Novo? Maybe it’s because they WON’T be pursued, not being required, and will simply end up as monuments to MOY’s mismanagement and company demise. Novo (and the nature of ore supplied to the mill) has years of mill production ahead of it WITHOUT the need for the mill circuit upgrades that MOY was attempting to complete.
QH has already stated the minor modifications that Novo has decided to perform on the Nullagine mill – the NOVO mill. If and when there comes a time for addressing moderate to high refractory pyrite/arsenopyrite dominant ore processing, Novo can pursue PROVEN ALTERNATIVES than resuming a disastrous MOY proprietary INOX / PINOX “brain fart”.
Is there more clarity now?
Tx