Production Status and Plans UpdateTalked to Investor Relations today about 2006 production, Aquarius, the Stock mill, Nixon Fork and East Timmins. Here is what I think was said but please allow for misinterpretations on my part, as I will not be quoting directly but editorializing. Others can verify, clarify and elaborate as the year progresses.
Summary: The only 2006 gold production amount to which SAS will subscribe at the current time is 50,000 ounces. However, depending on the results of ongoing studies and drilling, an additional 30,000 oz could be generated from processing the tailings at Nixon Fork and Nixon fork could start underground production in the fall of 2006 and generate additional ounces. Additionally, some production from Taylor might occur this year.
1.) Aquarius: no production is anticipated from Aquarius in 2006. SAS will take physical possession of the property on June 1, 2006 and becomes the official operator. Currently, SAS is conduction a study to identify and resolve any infrastructure and production issues. Aquarius is seven kilometers from the mill and so bringing the ore to the mill is a minor issue. Also, Aquarius has reserves that can be immediately mined when ready as well as inferred resources. The freeze wall will support year round operations when production begins. Conclusion, production can start at Aquarius any time after June 1, 2006 whenever SAS chooses based on some additional refurbishing and maybe expanded capacity at the Stock mill.
2.) Taylor: operations and drilling to finalize resources is still underway and some additional infrastructure must still be completed. Could produce ore for the mill during 2006 but SAS is not comfortable announcing any production for Taylor as of yet and is pushed will say probably no production in 2006.
3.) Clavos and Stock: Clavos is supplying the production ore currently and I forgot to ask about plans for the Stock mine.
4.) Stock mill: the study currently being conducted is looking at the impacts of producing from the three Stock complex mines (Clavos, Stock and Taylor) plus Aquarius in 2007 and determining what modifications need to be made including potential expansion. These efforts will not impact current production.
5.) Nixon Fork: Will start processing the tailings with the thaw and plan to compete processing all tailings in 2006 before the property freezes up again. The estimated resource is 30,000 oz of gold but this production is not included in the 50,000 estimates for 2006 that is the Stock mill production. The permits are in place to begin mining and some drilling and resource specification is occurring now. Production from the underground mine is estimated to begin in the Third Quarter of 2006, the fall, after the tailings task is completed. No estimates of gold production quantities are being made at this time.
6.) East Timmins: Note-SAS is the largest property owner in the Timmins area. A $3 million dollar drilling program started about 30 days ago using one of the company drills. The last private placement funded this effort. SAS is operating the program and is free to follow their field geologist’s inclinations. We could have results announced in 1-2 months I guess.
This is all I think that I know. Would appreciate any corrections or updates from the more knowledgeable longterm posters: MOe4, Benson, KentWilkens, LargeRichard. . .