Can Peranghi Boost Production to 25,000 ounces/year?I have previously done these calculations and the answer is yes.
But we now have additional information on the starter pit which now measures 150 m by 80 m by 20 m deep and which, by my estimation, is now fully covered by the closely spaced drilling.
We have two estimates......the bulk sample from 5000 m 2017 closely spaced drilling from a higher grade mineralization , and another 7500 m of closely based drilling since then.
1.....
.The 2020 bulk sampling data is based on... ....... each block is 5 m by 5 m by 10 m deep= 250 cu m times 2.5 tons/cu m=625 tons
.......5000 m @10 m deep is 450 blocks times 625 tons/block = 281,250 tons
......15,677 tons were mined in the bulk sample down to 10 m containing 644 ounces of gold
......
Contained gold in this bulk sampled area = 281,250 / 15677 X 644 ounces = 11,750 ounces.
We now know that the ounces sampled in 2017 and reported in 2018 were underestimated by 144 % ( Excerpt from Q2 below ).
That is, the actual estimated contained gold in the bulk sampling zone is 11,750 X 1.44 = 17,000 ounces
2....free digging samples from 7500 m drilled in 2020
......number of blocks mined by free digging = 675
.....number of tons = 675 blocks X 625 tons = 420,000 tons
.....49581 tons were mined containing 1318 ounces
Contained gold in this mined area = 420,000 tons/ 49581 tons X 1318 = 11,000 ounces
So, within this 150 m of strike at depths to a maximum of 10 m sampled by mining in 2020, we have identified 17,000 + 11,000 ounces = 28,000 ounces.
@ a recovery of 90 %, this surface zone containing 700,000 tons can provide for one year of oxide mining of 25,000 ounces
Milling Capacity is 1 million tons per year, for any additional ore scrounged from Selinsing. We know from 2017 and earlier RC drilling that this zone contains excellent grades of oxides down to 50 m and there is a trend of increasing grades with depth. with higher grade sulphides possible below that.
So, several more years of 25,000 ounces is probable from this zone comprising the first open pit at a strike of 150 m.
Total strike length of these high grade zones within Peranghi is atated to be 540 m.
That is, more ounces of economic oxides will probably be developed from additional open pits within Peranghi
My calculations show that this first open pit has now been fully blocked and benched, and was ready for full commercial mining in Q2, but limited by the monsoon season.
Presumably, it is now underway.
Summary
Peranghi has sufficient oxide gold resources to sustain production at 25,000 ounces per year for several years.
This level of production should provide a substantial boost in share price, along with robust cash flows to fund other developments
Notes extracted from Q2 report
The near-surface drilling program substantially increased Peranggih mineral inventory compared to the internal Resource estimated in 2018 at the same area based on widely spaced RC and diamond drilling. The total ounces have increased by 144%, the Au grade by 37%, and the tonnage by 79%.