RE:RE:RE:RE:RE:RE:Press release thoughtsganndolph - I'm trying to extrapoliate the Costerfield 3Q19 Au eq. production by using the tonnes mined in the previous two quarters and the Youle grades mentioned in your post to Albertan22. I'm trying to determine MND's success in acheiving the low side of their Costerfield 2019E production estimate.
I sourced the mill production number out the quarterly MD&As. Please feel free to correct my mistakes.
MND has to produce approx 29,000 Au eq. oz in 2H19 to hit the low end of the 2019E -> 41,000 Au eq. oz. This equates to mill head grade of 11.25 Au eq. ozs using 37,372 tonnes of ore processed per quarter as stated in the 2Q19 MD&A. As you continue to review my calculations, I suspect MND'd 2019 Costerfield production will fall short of the 41,000 using past posted production numbers.
2Q19 MD&A states 37,372 tonnes of ore processed. Saleable Au eq. is 5,257 oz. This puts the Au eq. grade at 5,257 oz. x 29 gm/oz / 37,372 tonnes = 4.08 Au eq. gm/ton. This is very close to the MD&A stated head grade.
Assuming the 3Q19 ore processes is 37,372 tonnes and Au. eq. of 15.5 g/t, this would put the 3Q19E saleable Au eq. at 37,372 x 15.5 g/t / 29 gm/oz = 19,974 Au eq. ozs. To assume a head grade of 15.5 g/t is very high. If I use a 1H18 (6 months) head grade of 10.29 Au eq oz/ton, the revised 3Q19E saleable Au eq. at 37,372 x 10.29 g/t / 29 gm/oz = 13,260 Au eq. ozs.
13,260 Au eq. ozs is $19.9M USD at $1500 USD/oz.
Are my calculations correct?
Do you think the 3Q19 mill head grade will hit the historical 1H18 10.29 Au eq g/t for the entire 3 months?
Do you think 4Q19 saleable Au eq. will be 13,260 Au eq. ozs