OTCPK:LSLCF - Post by User
Post by
TheRock07on Jul 28, 2013 7:15am
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Post# 21635049
Q3 production forecast at 20,000 oz
Q3 production forecast at 20,000 ozIts encouraging to see gold stocks showing up in the top 10 gainers on both exchanges this past week.
It encourages looking ahead to the current quarter ( Q3 ) following a record quarter 2.
LSA,s milling plant has 8 million ton capacity and its new mining fleet can easily meet that capacity.
In Q2, the annual milling rate increased to close to 5 million ton/year.
After milling, the ore is then stacked on the leaching pads.
Note that the average stacking rate in the month of June increased to over 15,671 tpd with 470,141 tonnes of ore stacked, a record under the Company's ownership;
This amounts to 1.41 million tons on a quarterly basis.
Its possible that higher rates may have been the case in July to Sept, but lets assume Junes numbers.
At 0.58 gms/ton, the stacked ore contains about 26,000 oz of gold.
Recovery rates are 77 % of gold stacked, which amounts to just over 20,000 oz for Q3.
Note also that there are/have been recent backend optimzations that should add 3000-4000 oz per year, at little extra cost.
So, Q3 production has an excellent chance of hitting 20,000 oz or double that of Q1 of this year.
I know of no other gold producer that can claim such a doubling of production over just 3 quarters.
Commensurate with this increase, there is an excellent chance that all in cash costs will drop to the $900 per oz level which will elevate LSA to being more efficient than most gold producers.
Anyway, this is my last post here until news is delivered...