Service Cage Project...I believe it is very important to understand just where they stand in terms of the actual progress that has been made to-date...and...not lose focus due to the recent smash in the share price. I am still on the sidelines and hope to build a full position, accordingly. It all comes down to execution and following the progress and market conditions. I decided to give all that may want to follow my posts a "taste" of how I go about seeking out a target and the process that goes into my investment decisions...in otherwords, analysis, study, knowledge, experience and the ability to piece the story together and assess the risk moving forward. Most definitely...not easy!
Please take the time to review the following, very important in order to understand how they will execute their plan!
The Actual Configuration diagram is where they started....1,000 tonnes per day...waste & ore combined.
The Phase II Configuration diagram is what they are working on...present day...2,275 tonnes per day...waste & ore.
The Macassa Mine Shaft has three compartments...if you study the diagrams carefully you will notice that in the Actual Configuration illustration they are only using two compartments with the third compartment available, but not in service. The Phase II Configuration, which involves the expansion illustrates the finished product...full use of all three compartments..not only that....you will notice the skips modified from the existing 10 tonne skips to 12.5 tonne skips.
They are able to complete 13 skips per hour....13 X 2.5 tonnes (new skips) = 32.5 tonnes. of additional capacity per hour with the newly designed skips...Nice!
The modifications to the existing structures and additions are numerous and I would have to go on and on and on to explain them thoroughly...not pratical. However, in order to increase capacity the hoisting capabilities must be addressed in order to match the additional tonnage and number of skips per day.
In my opinion the obstacles and project delays can be overcome and I look forward to a doubling of the current production...my concern would be that of grade and available mining production from underground...can they execute in terms of feeding the Mill accordingly. I will monitor this closely as we move into the New Year and approach the May, 2013 target date. If they can execute and if gold can hold up and even appreciate in value this stock is cheap!
The new personnel cage will have the capacity to carry 120 employess @ three levels...this will increase efficiency in terms of getting the workers to their various production locations and get the "rock" to surface as quick as possible! Remember, the majority of the mining will be done about one mile underground! Improvements in employee availabiliity and production per shift will increase mining production accordingly.
The new three deck man cage, which is 120 feet long, was designed by Kirkland Lake Gold staff together with Wabi Iron Works, located in nearby New Liskeard, Ontario (see the recent profile of Wabi in the The Globe and Mail Report on Business June 29th by clicking here). It will have the capacity to move 120 men at a time and due to it's configuration will also be able to “sling” equipment internally within the cage. Currently the existing hoist is utilized to hoist men, materials and waste and ore. The new hoist and new man cages will when completed hoist manpower only which will permit the production hoist to concentrate on hoisting more ore and waste. The new configuration of the man hoist and cage will also move manpower up and down the shaft more efficiently
I enjoy sharing and hope that my posts will be helpful to those that are interested.
Digger144
P.S. There are always opportunities...it all comes down to what we do with them!
One persons pain...is another ones gain.
I have been on both sides....I do my best to reduce the risk!