GREY:VITFF - Post by User
Comment by
MVargason Apr 07, 2021 12:31am
145 Views
Post# 32947298
RE:A few thoughts on recent discussions
RE:A few thoughts on recent discussions I'm not at all concerned about the higher strip ratio in Q1. To me, it simply means that more stripping is being done in advance of mining operations which will lead to less stripping later.
The life-of-mine stripping ratio won't change unless/until there is a change in the mine plan, or as John has hinted at in the past, Victoria might even reduce the amount of waste material by lowering the cut-off grade due to much higher gold prices than were considered during the FS. This would reduce the overall strip ratio, and increase the ROM tonnes stacked, but with some sacrifice in average grade.
The lower crushed ore stockpile in Q1 was probably a consequence of equipment utilization in stripping operations. But FS estimates do assume that 2.5 million tonnes of primary crushed ore are placed into stockpile to be placed on the HLP in the subsequent 9 months. So there is some catching up to do in that respect.
My Q1 guestimate of production numbers assumed 1.1 million tonnes of ore stacked on the HLP in Q1, compared to 0.9 million tonnes actual. However the reduction in tonnage was partially offset by higher grade of 0.9 vs my estimate of 0.78. Probably 1.1 million tonnes was a bit too much to expect, especially considering March was a start-up month with employees returning to
work, still quite cold temps in early March and high snowfall amounts this winter in the Yukon - as much as 3 times average snowfall in Whitehorse.
The 26,759 oz produced in Q1 puts us on track to at least meet the lower end of guidance for 2021 and the company will generate a lot of cash by meeting the low end of guidance - certainly a lot more than is reflected in the current share price.