RE:RE:RE:RE:RE:RE:RE:BoughtFrom CIBC Whistler Conference -- Joe states (many times) that mine and mill are both running fine & issues w/4Q results were a result of late quarter ramp-up execution issues. Mentioned that production of 150K oz was done over effectively five months of operation and that they are achieving solid
positive cash operation. Said (again several times) that miss was caused by equipment and stope failures in Dec -- had been tracking to 90K oz during Oct & Nov but lost 2 higher grade (+12 g/t) stopes that were to be start being mined in Dec to technical/execution problems and not enough stopes were pre-developed to react to this last minute issue.
Confirms @ ~44.15 minute mark that these same high grade stopes are being mined now (January/18). I believe he also said that they generalize stopes into 3 categories-- a) 4-6 g/tom b) 6-11 g/t and c) +12 g/t so I would expect that this should make 1Q results somewhat less stressful (ie not counting no high grade at end of quarter but rather mining it at beginning of qtr and then can fill in with lower grade as desired).
Also said that they intent to ramp up marketing effort as they were so focused on getting the production underway that they didn't spend time on same. Mill ran for 2 days at 4400 ton/day with zero hiccups. They are held to 2700 tons/day due to approved permit levels. Mgmt had no plan to request increased throughput until they found the mill working so well and then re-evaluated specs and determined that mill could handle much more with only minor spare change investment cost.
Qualtiy control as well as existing & planned grading processes discussed ~45 minute mark and again at 1:00 mark
Repurchase of stream discussed ~55 minute mark.
Low grade stockpile at surface 150K tons @ approx 5 g/t.
IF they get the permit for increased mill capacity by mid-summer 2018 -- they will add the low grade into production (I assume while they build out the stope capacity for additional tonnage).
Joe clearly taken to the woodshed yesterday but unwavingly convinced that mine will deliver as planned when start-up issues are sorted out over first 12 months.
https://www.cibcvirtual.com/whistler2018/mining-panel