Royal MD&A From Royal Q1 Company MD&A, April 30th 2012.
Goldwedge Project
The Goldwedge Project, represents the Company’s most advanced project and is located in the
Manhattan district of Nye County, approximately eight miles south of the Round Mountain mine
and has been issued a mine and mill permit by the NDEP. The Company has been completing
the refurbishment of the on-site processing plant which was used for the test mining and
processing that took place in 2007 and 2008. As noted above, the mill was commissioned this
past April. The process includes primary crushing and grinding facilities that feed a gravity
recovery system. In addition, dry stack tailings containment as well as silt and fresh water ponds
are in place. Testing of the various mineral processing functions commenced during April 2007,
and continued throughout 2008, using previously extracted stockpiles of low grade gold feed
material, as well as concurrently newly mined material. The plant feed material was processed
into gold doré on site. The Company has recently completed construction of the Rapid
Infiltration Basins (RIB), dewatered the previously completed underground development and
also commenced phase 2 of the underground development program. This phase of the
development includes the exploration of defined mineralized zones concurrently with the second
phase of decline development. The previous work has concentrated on the development of a
spiral decline as a means to explore the deposit at depth. As part of the earlier program, a series
of crosscuts were constructed at specific intervals to effectively assess the potential mineralized
zones. Phase 2 of the development is concentrated on developing along the strike of known
mineralized zones to assess continuity and grade as well as prepare areas for future test stoping.
Currently, all mineralized material is sampled daily and analyzed for gold content at the Company’s onsite assay laboratory. The assay laboratory was also recently refurbished and has now been approved by the NDEP.