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Rye Patch Gold RPMGD

Rye Patch Gold Corp is a Nevada based, Tier 1 mining company engaged in the mining and development of quality resource-based gold and silver mines and projects. The firm operates in one segment, which is the Exploration and Development of Mineral Properties. The firm operates through two geographical areas, Canada and the state of Nevada in the United States of America. The company's primary source of revenue is from the sale of gold dore.


OTCQX:RPMGD - Post by User

Post by Fullplateon Sep 14, 2017 11:18pm
201 Views
Post# 26699210

Overliner - Pushing Back Reaching Commercial Production

Overliner - Pushing Back Reaching Commercial ProductionI understand the explanation regarding the need for an overliner, which is causing the delay in reaching commercial production.  What I don't understand is why they did not anticipate needing an overliner.  Or did they plan for an overliner but not understand how it would delay ramp up?  If applying an overliner is uncommon and caught them by surprise, is this an added cost factor going forward?  It sounds like the overliner process involves placing crushed low grade material on the liner as the pile size continues to increase (sort of a leading edge of the pile, if I read that correctly). I assume that this lower grade material comes from stockpiles set aside for future heap leaching when prices are higher. That extra step sounds like an added cost, but not a continuing delay once commercial production is reached. Are these assumptions correct?

I am not happy that once again there is a negative surprise regarding production. But on the positive side, management gave us a 3 week advance notice, so when the disappointing production numbers are reported in October they won't be a surprise.  Management has improved from last quarter when they waited to announce the problems when production was reported. 

It it would be nice to get some answers on any continuing production effects/costs regarding the overliner process. Can anyone participating on this message board take a stab at answering these questions?  We may never get a complete explanation from management. 


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