GREY:VITFF - Post by User
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phoenix_traderon Mar 25, 2022 8:37pm
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Post# 34547429
AISC calculation, from MD&A, note 15% crush up plan
AISC calculation, from MD&A, note 15% crush up planAISC1 for 2022 are expected to be between US$1,225 and US$1,425 per oz of gold sold. Sustaining capital, not including waste stripping, is estimated at US$55 million for 2022. Sustaining capital will be high in 2022 compared with future years due to one-time infrastructure expenditures including construction of the water treatment plant (US$17 million) and higher than normal mobile equipment rebuilds (US$8 million higher than normal).
Capitalized waste stripping is estimated at US$21 million and is included in AISC1 but is not included in the sustaining capital above. Waste stripping will be expensed or capitalized based on the actual quarterly stripping ratio versus the expected life of mine stripping ratio and may be quite variable quarter over quarter and year over year. This accounting treatment for waste stripping will affect earnings and capital but will not affect AISC1 or cash flow.
Growth capital related to Eagle Gold Mine expansion initiatives is estimated at US$40 million for 2022. In addition, growth exploration spendingin 2022 is estimated to be US$20 million. The Company has initiated ‘Project 250’ aimed at increasing the average annual gold production of the Eagle Gold Mine toward 250,000 ounces of gold during 2023. The two primary opportunities to increase production are the scalping of fine ore from the crushing circuit and adjusting the seasonal stacking plan.
Scalping of fine ore is expected to reduce wear and energy requirements as well as increase overall capacity of the crushing circuit. There is potential to increase design throughput of the crushing circuit by approximately 15%, thereby increasing potential annual ore stacking on the heap leach pad by approximately 1.5 million tonnes annually. Detailed engineering and procurement of equipment is underway to enable construction to start in H2 2022 to benefit 2023 production.
The Company also intends to reduce the winter stacking curtailment down to one month increasing annual stacking to 11 months. Project 250 will require the addition of two 785 haul trucks and a loader.