The facts b) Start of commercial production
Management assesses the stage of advancement of the Elder mine to determine when it will begin commercial production. The Company uses its judgments and considers a number of criteria to determine when the mine will enter into commercial production, which will result in a reclassification of all expenses capitalized to Elder Mine in production. Among others, the following criteria are used:
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The achievement of a predetermined level of activities; a production of 150,000 tons of ore per year as used in the ‘’Preliminary Economic Assessment’’ on the Elder project by the firm Roche Ltd, Consulting Group.
The ability to support a continuous production and achieve constant operating results over a period of time;
Recovered grade, ore value and significant revenues; Stage of completion of development works.