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Newcastle Minerals Ltd A.NCM


Primary Symbol: V.NCM



TSXV:NCM - Post by User

Bullboard Posts
Comment by miningmanon Jan 31, 2018 3:29pm
157 Views
Post# 27473718

RE:RE:RE:RE:RE:RE:Beating a Dead Horse

RE:RE:RE:RE:RE:RE:Beating a Dead HorsePaths will hopefully provide his opinion on this matter,  but I offer the following.

 More stopes  can certainly help with costs ,  in two ways.   Yes improved ability to blend different  mined material  CAN improve the mill heads and therefore the cost per ounce.   Totally ignoring grade concerns ,   yes more stopes gives the miners more working areas ,  so when operational difficulties arise ,  as per the Northern Miner article ,  it gives crews increased  operational flexibility,  better daily productivities ,  and lower cost per tone.

The big caveat , however is dont overestimate these benefits.  Unless the decision is made to leave it in place ,  low grade material still has to mined in order to maintain scheduled stoping sequence.


And I've said this before , there must be about one stope being completed every quarter...

270,000 tonnes per quarter ,  is  90,000  tonnes per rmonth,  With  six  active stopes ,  each providing about  500  tonnes per day, or 15,000 tonnes per month with an estimated average of  45,000  tonnes per stope ,  is a stope life of about 90 days.  Now this is a really overly simplistic   view, ( ignores developpment ore tonnage etc)  but tie this in with the Nothern Miner  article   where management has stated because they  now recognise they need the flexibility of more working areas,  they propose increasing monthly development rates from 450 to 700 metres. This is a huge increase and has some horrible logistical challenges associated with it .  This type of increase is way easier said than done ,  and unless they REALLY get on with it ,  existing sopes will be at the completion stage before replacements are available.    And development costs per metre will be anywhere from $3000 to $9000  per metre  depending on how the accountants want to organise this.

In summary , I wouldnt expect a significant increase in the number of active stopes untill mid 2018 at the earliest
Bullboard Posts