Post by
Bottles on Oct 08, 2014 9:10pm
Checking in....
Excellent update.
Not pointed out in the press release is that recovery rates of gold for Q3 was 96.4% compared to an average recovery rate of 95.2 year to date. That's 1% more gold and tells me that new management is very much on top of things.
With year end numbers for gold being increased to a range of 60,000 to 64,000 ounces, then Q4 production numbers of gold are expected to range from 10,300 to 13,3000 ounces. Per the update, Santoy Gap reached 330 tonnes per day at an average grade of 8.1. Per comments made, production from L62 will be reduced while throughput from Santoy Gap is expected to increase.
If we assume 70,000 tonnes milled in Q4, 330 tonnes a day from Santoy Gap approximates 28,000 tonnes of this total that experienced an average grade of 8.1 in Q3. If this holds true in Q4 coupled with a 96% recovery rate, we are looking at 7013 ounces of gold from Santoy Gap. If we assign a value of 5 gpt to the remaining 42,000 tonnes milled, we are looking at 6482 ounces of gold produced from elsewhere (ie: L62 et al). 7013 + 6482 = 13,495 ounces of gold and places year end production at the higher end of the range and or 64,000 ounces of gold.
Throughput from Santoy Gap, however, is indicated to increase above the 330 tonnes per day and with those average grades of 8.1 gpt, Claude is on path to EXCEED 64,000 ounces of gold in 2014.
In another comment, the Update indicated $13.3M cash and bullion on hand. This helps address some liquidity concerns I had in regards to winter re-supply efforts. With the strong operational performance being put in (ie: after years of Mr. M, who would have thought the same), Claude is also in a better position to undertake debt with respect to re-supply efforts/costs. The key, as we all know, remains the selling price of gold produced. By year end, I'm in the camp that we will see higher gold prices. The strong dollar will not last forever and geo-politics are apt to spike the price of gold at various points between now and year end. Sustained higher prices post any spikes is anyone's guess but one of these days, gold will hold the gains. IMO, of course!