OTCPK:HCGI - Post by User
Comment by
JRafflesUKon May 24, 2017 3:07pm
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Post# 26278938
RE:RE:RE:Strong Performance at Fosterville 70,000-80,000oz Q2 2017
RE:RE:RE:Strong Performance at Fosterville 70,000-80,000oz Q2 2017If gold returns to $1770 CAD then the closed mines could re-open and propel production to 700,000 in 2018....... The lantern ore at the Cosmo operation could come on stream in 2018. The 2017 ounce forecast only includes 20k ounces from Cosmo from less than 6 months mining output [link below].
When the 2013/2016 ounces, of 55k - 75k, ounces are improved by high grade Lantern ore in 2018, this project could be firing on all cylinders and producing ~ 100k ounces.
Therefore, if the mothballed mines were also to be reopened in 2018, then 700k ounces may be a walk in the park and closer to 750k may be on the cards. Bearing in mind that we are only just starting to benefit from the ultra-high grade ore at Fosterville, the upside in ounces could be remarkable.
This company continues to surpriase on the upside.
https://www.klgold.com/assets/operations-and-projects/australia/operations/northern-territory-operations/default.aspx.
Cosmo April 12 2017 press release…. The Cosmo Mine produced 9,092 ounces of gold, a decrease from Q4 2016 and Q1 2016. The shortfall was primarily due to a temporary halt to production during late February and early March to redevelop access to an escape way, which failed in February. During the quarter, there were three diamond drill rigs in operation, following up on potential extensions to the Sliver, Taipan and Lantern zones. Process improvements in the mill continued to focus on quality performance with overall mill recovery averaging 95.2% during the quarter.