RE:RE:RE:KL is in wonderful shape
Swan is still open at depth and clearly getting better with depth. The Dec resource report should be amazing based on the last PR. The grades and widths were awe inspirering.
The build up to your above comment is highlighted in the Q2 MDA, with particular reference to Fosterville’s grade explosion in June 2018. Peer companies with grades ~ 6gt need to undertake thousands of meters of drilling in order to increase resources to any significant extent - but with grades and widths being encountered in the Swan zone, the company wide resources could leap beyond recognition in Dec.
The Q2 MDA is clear, it states that the 30.4gt grade achieved in June 2018 is the AVERAGE GRADE of all ore mined at Fosterville. However, this increased average grade was the result when mining activity in the Eagle zone was located IN CLOSE CONTACT WITH THE SWAN ZONE.
The MDA paragraph the finished with the observation that in Q2 “….the company only processed a small amount of development material from the Swan zone during Q2 2018, which also returned higher than expected average grades….”
The upside potential of grade in the Swan zone could therefore leave in the shade, the huge gains already made since the Newmarket takeover.
Source MDA 2018 Q2 page 20
The Fosterville Mine produced 77,462 ounces in Q2 2018, based on processing 121,342 tonnes at an average grade of 20.6 grams per tonne and average mill recoveries of 96.2%. A key driver of the strong quarterly results in Q2 2018 was record monthly production in June of 31,710 ounces, which resulted from processing 33,296 tonnes at an average grade of 30.4 grams per tonne and average recoveries of 97.5%. Q2 2018 production compared to production of 77,069 ounces in Q2 2017, when the mine processed 147,486 tonnes at an average grade of 17.2 grams per tonne and average recoveries of 94.7%. Productionin Q2 2018 increased 21% from 63,843 ounces in Q1 2018, reflecting a 23% increase in the average grade. The growth from the previous quarter largely reflected increased mining activity in parts of the Eagle Zone located close to the contact with the Swan Zone.
Average widths and grades in these areas have exceeded expectations. In addition, the Company also processed a small amount of development material from the Swan Zone during Q2 2018, which also returned higher than expected average grades.