RE: RE: cooper I think the CEO had mentioned (in the Nov. 2011 video) something about the copper levels at Jojoba being high only in about less than 10% of the deposit - he said it was likely closer to 5%. I think he said that the other 90 - 95% of the deposit had copper levels that were similar to the Lluvia de Oro deposit (successfully being mined by NWM).
However, that was a relatively long time ago. The company hasn`t provided a detailed update about mining at Jojoba since that point. It`s not clear if the findings at Jojoba are now different from the early findings at Jojoba back in Nov. 2011. It is not clear what has prompted the delays in mining and processing ore of from Jojoba. This note from the latest presentation is interesting also:
``Acquired ownership of SART treatment plant from BioteQ for $2M, considerably less than cost; which can be used for additional copper``
It almost seems as if they want to give the SART treatment plant at shot at treating the copper at some point down the road. I wasn`t sure that was possible due to this:
``As part of the sale arrangement, BioteQ will maintain ownership of the process logic control (PLC) system that forms a key intellectual property component of the plant. BioteQ will be removing the PLC and related equipment from the site.``
That note was from Bioteq`s June 19, 2012 NR, about the SART sale to NWM. It`s not clear if NWM has found a replacement for the PLC system (or a work around) or has worked out an arrangement with Bioteq to get hold of the PLC system.
Also, I believe NWM claimed at the time that they found the standard SART process was complicated and expensive to operate - it was thought to be breakeven at best, and perhaps viewed by NWM as not having sufficient revenue payback to justify the $9 million price tag (at least without improvements). NWM ending up paying $2 million for the SART plan. Perhaps the payback is achievable at $2 million (to move it into production at some point down the road, assuming they have an answer to the missing PLC system). Also, if possible, I`m sure finding solutions to the deficiencies will increase the chances of it be profitable.
As an alternative to the SART copper treatment plan, I believe NWM had mentioned plans to test a process called ASPN (Acidification, Sulfidation, Precipitation, and Neutralization). It`s not clear how testing progressed.
At this time, it is not clear if Jojoba turned out to have more elevated copper content levels in the 90 - 95% area than originally anticipated or if copper levels in that area are still similar to copper levels seen at Lluvia de Oro.
Elevated copper levels within gold heap leach type operation/deposit requires a process to remove the copper othewise there is a chance it might clog up the ADR plant. The copper levels appears to be sufficiently low enough to not create clogging issues for the Lluvia de Oro deposit. The plan was to use the same ADR plant for both the Lluvia de Oro deposit and the Jojoba deposit. As such, I imagine, if the Jojoba deposit was having a copper processing problem then it would result in difficulties for the entire ADR plant, as the pregnant fluids from both the Lluvia part of the leach pad and the Jojoba part of the leach pad drain into the same ADR plant. Of note, I believe they mentioned they planning on using a separate part to the leach pad for Jojoba ore during the testing phase of Jojoba. This would allow them to stop the Jojoba fluids from flowing into the ADR plant if there were any difficulties (i.e. if the copper levels became too elevated within the Jojoba ore).
Again, it`s not clear as yet why Jojoba mining was delayed to April 2013. It`s not clear if it`s a combination of factors. It`s also not clear if they plan on launching a copper treatment solution, be it SART or ASPN, with start up of Jojaba mining come April 2013.
It looks like they recently started up a new pit - an extension of the Creston deposit (to the northeast). This could be where the planned near-term increase in production is expected from.
Their new forecast shows that they are hoping to average 35,000 ounces of production next year (2013). It looks like they are maybe planning on getting it from the Creston pit and the new Creston extension pit in terms of a near-term production base, then Jojoba being added in come April / mid next year once started up.