RE:New ball mill and Q3 management D&Ahttps://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00000391&fileName=/csfsprod/data149/filings/02160680/00000001/s%3A%5CToronto%5CNathan_Cole%5C925589.pdf
Operational improvements include:
In November, mining cut-off grades were raised to 0.22 ounces per ton (“opt”) from 0.18 opt resulting
in a head grade for January of 0.45 ounce per ton - a 46% increase compared to the year-to-date
average.
On January 19, the Company hoisted a record 3,118 tons in a 24-hour period consisting of 1,738
tons of ore and 1,380 tons of waste.
On January 29, the Company poured 4,706.65 troy ounces at 85% fineness totalling 4,000 fine
ounces - the Company’s largest gold pour in a one week period.
Gold production in January was excellent with 13,483 ounces produced. Total gold production during
the quarter was 31,022 ounces.
Dry commissioning of the new ball mill has started and will be completed in February.
Underground stope development and sustaining capital resources over the next 12 months will focus
on increasing mining ratios from high grade workplaces on the 5,400’ and 5,600’ levels in the SMC.
Significantly less stope development will take place in the ‘04/Main Break.
Revised full year guidance resulting from this new six-month mine-plan results in a reduction in fiscal
2014 (ending April 30, 2014) production guidance to 120,000 – 125,000 ounces. This nevertheless
represents a 30% - 36% increase over fiscal 2013.