Operational Update Answers to your many questions related to recent $8 m funding
1…upgrade to Pine Cove mill…..
The objective is two fold..1.) return the current circuit to operating status to process the existing stockpiles,....Having the mill in operating condition opens a big opportunity to start generating cash flow, first from the stockpiles and then from Hammerdown. and..2.) complete some upgrades to handle and maximize recoveries from the higher grade hard rock ore from Hammerdown.
Hammerdown ore has a lot of sulphides and is quite hard to grind.
To get the high recoveries of 98% they have to grind it fine and then handle the sulphide mass through flotation and leaching. So the upgrades would include some extra grinding and flotation/leaching capacity that would get us to that desired recovery .
QWN ore is also high grade , hard rock and high sulphide , so presumably meets that mettalurgucal requirement as well.
2...the gravity circuit for Aggregates wash plant is all designed and will be installated in the next few weeks, so potentially some gold in 2024. The amount depends on the volume and aggregate feed which we have no control over.
Having this gravity circuit in place is a nice low cost recovery from aggregates sourced from waste ore.
3..Gold fines from Tailings Pond #2 will be processed in 2024 as part of the stockpiled ore once the mill is refurbished and resumes processing in 2024
That material has been excavated and is stored beside the mill. Our plan is to refurbish the mill and process the stockpiles, starting later this year.
4...Both Pit 278 and the Gabbro pit of Stoger require additional infill drilling to firm up the mining plan and economics before production resumes .
Drilling will begin as soon as current funding is received which will be in early Seltember
5..When do you foresee these $8 million in Funds being raised, being available for our planned drilling programs for 2024 ?
The financing is due to close in early September so we will have the funding available to complete the drilling at Stoger Tight this fall and drilling will begin at HD as well
6....Ore Separator
Not for interim production from stockpiled ore .....that will be direct to mill mined ore...but current planning is to have one installed at HD mine and also at the Pine Cove mill for mined ore in excess of HD
7.. The tolling MOU with NFG is still active , awaiting a decision by NFG which is out of MAEc control
8.. future status of our Nuggett Pond Mill .
The process circuit at Nugget Pond is a very valuable asset which along with Some other equipment may be useable at Pine Cove for the mill upgrades and to reduce capital costs.
And of course, the HD FS will also be funded from the $8 m.
So, planned developments in place and to be funded by this $8 million funding + will see interim gold production beginning as soon in 2024 as the Pine Cove Mill is upgraded ...probably in Sept Imo .
This is a seminal event for Martime , as we move fiom unloved exploration status in which share price is not connected to the POG, into producer status linked to the POG, which means multiples higher valuation and much increased coverage and liquidity .
Its difficult for me to estimate right now just how much production can be extracted from stockpiles plus the other sources , excluding any NFG tolled ore.
The tailings Ponds should be signifucant .
Approximatly 160,000 ounces were historically milled at the Pine cove mill plus unknown amounts of fines from the wash plant .
Average recovery was 84% , which implies about 20,000 ounces in modest amounts of slurry in shallow depths in Tailings Pond #2 already recovered and stored at Pine Cove ....this is my assumption
but not confirmed.
Haven't a clue about what might be added from the Aggregates wash plant nor any other stockpiled which I may be unaware of except Pine Cove mine and Deer Cove plus small local stockpiles.
In total, the maximum interim production ,as currently estimated by myself, would be about 25,000 ounces which would be quite nice as it would take us well into 2025 , leading up to HD start.
The minimum imo would be 10,000 ounces..
The big wild card here is the NFG tolling activation .
NFG shareholders including myself see the NFG share price, now at new lows, only being rejuvenated by early production whose cash flows would replace shorts controlled equity dilution at low prices .
August 14,is NFG Investor Day , shareholders are invited for site tours etc and almost all share holders are underwater.
Perhaps they will announce early production rather than face , instead , street lamps festooned with rope nooses.Lol
Anyway, 25000 ounces gets us about $75 million in revenues at current POG from which free cash flows could fund the HD mine costs while adding free cash from warrant exercises .
Even 10,000 ounces gets us $30 million to cover all costs plus some free cash flows.
Plus some exciting drilling plays which will give us much needed speculative froth for planned promotions .
So, there you have it to the fullest extent of my current knowledge.
AIMHO
GLTA