real numbers vs basher-numbers:Outlook
The Company has continued to mine and stack throughout the winter months at planned rates. It now has approximately 1.4mt of ore stacked on the leach pad with a further 400kt on the ROM pad.
The Company paused leaching and gold production in the first quarter of 2021 as cold weather made leaching conditions less favourable. This allowed for a full quarter of plant maintenance and the Company is seeing the benefits of this in current production. This cold weather disruption will be remedied for the 2021/22 winter season with the installation of a boiler plant to heat process water nearing completion.
The Company also wanted to conserve key chemicals and reagents for the warmer months given the continuing COVID 19related supply constraints.
The Company resumed leaching and production in early April 2021 with a successful gold pour in late April. The Company is targeting annual production in 2021 and 2022 of 50,000 oz and then a transition to the fresh rock ores in 2023.
There has been a slow start to production in 2021 and the achievement of full year production forecasts are dependent on no further delays on procurement due to COVID 19. Reagent supplies are currently unpredictable and any further delays will reduce production forecasts for 2021.
With a new crusherscheduled to be operational in summer 2021, the Company believesthat higherstacking ratesin the second half of 2021 will mitigate some of the lost production time in the first half of 2021.
The Company continues stacking ore on cell 3 of the leach pad. Stacking of the first level of the leach pad (Cells 15) will continue through this year. Completion of the boiler house, used to warm the barren solution, is planned for Summer 2021.
The Company continues discussions with Mongolian and international lenders on a multitranche project debt facility to finance the Phase 2 expansion. The definitive feasibility study remains on track for completion in summer 2021.