First Quarter In reviewing the First Quarter results, I have extracted this information which should be read: .....They are stating what they have done, and are doing for the record. .......Richard
"Jerritt Canyon"
"On January 6, 2012 Jerritt Canyon commenced an extended, scheduled shut down to perform significant maintenance and overhaul of key areas on the mill. This included completing construction of a new drying facility, reconfiguring the conveying system in fine crushing, and installation of a new Distributed Control System ("DCS") for the entire plant. Commissioning of the new components commenced on January 23, 2012 and continued through February 1, 2012 with the first day of production with both roasters operating on February 3, 2012.
Subsequent to the February 2012 re-start, production from the mill was less than expected for the remainder of the first quarter, averaging 1,400 tons per day which resulted in total production of 11,659 ounces during February and March 2012. The underperformance was a result of problems encountered during commissioning of the new DCS system and calibration of instrumentation, dryer bag-house, and the dryer burner. Troubleshooting and instrument calibration took approximately six weeks to complete. Additional issues were encountered with the new bag-house fans and pukers which were rectified by mid-February and have operated properly since.
In early March, additional issues with the new ore dryer and bucket elevator were identified. The Company is currently working with the ore dryer manufacturer and has put in procedures to mitigate the impact of the ore dryer issues until a permanent solution can be put in place. With the identification and rectification of these issues, the newly commissioned equipment is operational and is expected to achieve targeted average production of over 3,600 tons per day in the second quarter of 2012.
During the quarter Small Mine Development, LLC ("SMD") delivered 91,265 tons to the mill, containing an estimated 9,096 ounces, from the Smith mine during the three months ended March 31, 2012. The deliveries in the quarter averaged 960 tons a day as SMD continues towards a production of 1,200 tons per day targeted for the second quarter of 2012.
At the Company operated SSX-Steer underground mining complex, the Company continued to ramp up the production rates delivering 26,305 tons containing an estimated 2,988 ounces during the three months ended March 31, 2012; an increase from the previous quarter's delivery of 9,051 containing an estimated 1,117 ounces. Delivery of additional key equipment at SSX-Steer included three underground trucks and two drill jumbo's. In the second quarter of 2012, delivery is expected for one new drill jumbo, one new bolter, and four new haul trucks equipped with boxes especially designed for hauling backfill. After receipt of this equipment the operation will be fully outfitted and ore production is expected to be at 1,200 tons per day.
A total of 11 underground diamond drill holes totaling 10,332 feet were completed in Zone 4 at Smith Mine in the first Quarter of 2012. Assays are in progress. "