RE:RE:Connecting Otso Gold The current average head grade is around 0,9g/t-1.0g/t. Historically over the last 6 years various efforts involving reputed stakeholders like SRK, KPMG, Eldorado Gold Mining, and Various Boards and Mgmt of Nordic Mines (Now OTSO) have been involved in developing a new resource model and Optimised pit with a purpose of creating a larger block size and a taking a closer review of loss and dilution % in the two pits. The effort had been to increase average head grade from current levels to 1,28g/ton. Simultaneously serious time and financial resources has been invested to address the shortfall in milling capacity. Current throughput is c. 1.6m t/p.a. At 1,28g/ton the through put needs to increase from 1,6 to 2.0m t/p.a. Multiple Revised business models included shift in mining methods from bulk mining to selective mining to using laser sorting technology to complement either of the two methods. This was after USD 30M risk capital proceeds, between 2012-2016, failed to achieve a viable mining model on head grades and throughput.
Bottomline: At Gold Prices prevailing then in the range of USD1100-USD1400 an ounce, financial markets did not find improved guidance on operative metrics as suggested above credible enough.
Fast fwd FY2020, the single biggest change in scenario is the Gold Price today at USD1800 an ounce. Can moneys be invested by institutional risk takers at todays gold price to get head grades up to 1,28g/ton and throughput to 2.0mt/p.a?
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