Production setbacksMostly short-term frustrating stuff.
the increase in carbon rods is a positive step - that will help increase monthly production in the future...
*sigh*
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SINIVIT PRODUCTION UPDATE
The Sinivit Mine is at present operating satisfactorily, however, processing problems reduced production in June and July. These have now been rectified.
- In a Press Release in June it was predicted that 40,000t of mineralisation would be leaching by end of June. This milestone was not reached until mid July.
- In July due to the prolonged breakdown of the cone crusher, gold production was set back by a month. The crusher, owned by NGG, is maintained and operated by the mining contractor, HBS Machinery. A crushing expert visited the operation and has recommended placing an additional cone crusher in the circuit to both increase production and prevent a hiatus in production in the future.
- By the end of August 55,000 tonnes is scheduled to be in vats and leaching.
- An additional 8 carbon columns have been obtained (total 16) to allow NGG to operate up to 5 vats simultaneously. Four vats should be in operation by the end of August. This will greatly enhance production capability.
- The initial vats used for plant commissioning were relatively shallow - of the order of 3 to 4 meters deep. Relatively rapid recovery was achieved with 80% recovery estimated over about 2 months. Subsequently the first major production vat (Vat 2) was large, oval shaped and deep (up to 10m deep). Experience has now shown that these deep, and oval shaped (in the case of Vat 2) vats tend to compact the crushed gold mineralisation to the extent that permeability is reduced.
This in turn substantially decreases the leaching rate to the extent that we now predict it may take 6 months or more to complete leaching of Vat 2. It should not, however, effect the ultimate gold recovery. This is one of the reasons that production of gold decreased in June/July rather than increased. The other reason was the breakdown of the crushing plant for most of July and a problem with the gold stripping plant (both now rectified).
To resolve the leaching problem, future vats will be rectangular for ease of laying liners and restricted to 4/5 meters deep, maximum, to reduce compaction. This change requires more vats than originally planned which may result in a small increase in operating costs. The first of these additional vats, Vat A, (about 10,000 tonnes), is completed and presently being filled with crushed mineralisation. Vat 4 (about 8,000 tonnes), has commenced filling. The earthworks for Vat B (about 10,000 tonnes) are completed.
- A total of 1,730ozs of gold and 242 ozs silver were produced in the quarter to end of June 2008. We now estimate that 1,900ozs will be produced in the September 30th quarter, increasing to 5,500zs in the December 31st 2008 quarter. Production is expected to further increase to 7,500ozs in the March 31st 2009 quarter, after, and subject to the completion of the crusher grade. The lower level of gold production in the September quarter (from forecast production) is a direct result of the fact no mineralisation was mined or crushed in July, and the slower leaching rate.
- The site operating costs at Sinivit are running at a monthly rate of approximately US$550,000. As both the PNG Kina and Australian dollar have depreciated by 10% or more, costs in US$ terms should decrease in the future