Comments are from the transcript on SA - some typo's may be there in the transcript
https://seekingalpha.com/article/1600892-sandstorm-golds-ceo-discusses-q2-2013-results-earnings-call-transcript
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With respect to the Luna ramp up, Luna is now approximately half way done. The spending on that ramp up, the ramp up appears to be on track to still be completed by the end of the year. And they are also appear to be on track with respect to the actual budget, which was originally $50 million.
So that ramp up is going well and it has been recorded by a couple of analyst out there that they think that Luna has a cash flow fall to fund that ramp up. We did not believe that to be the case. So to be clear Sandstorm under the September 2012 amendment that we made with them that we are obligated to provide them additional $10 million. We've done and provided them with $3 million of that.
So Luna still has another $7 million coming from Sandstorm. And Luna still has the $20 million revolving facility that they have from Sandstone that they can use to complete the ramp up and that is all of the cash that they require to complete the ramp up. So Luna is in a good position financially to complete this ramp up and is going well and we're very excited about it.
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So on to Luna and the expansion efforts that are going there. Nolan gave you a little bit of road down, what's happening there. They have had, even in the Q1, which was a lower production quarter for them, they did have all-in cost of $1,100 in 2013 and based on cash cost of about $750. But that $1,100 also included an exploration cost to the Greenfield's exploration, which was pretty substantial, which from this point going forward is that program is on hold.
The Phase 1 expansion is still in schedule. Close to $60 million has been spent, in fact a little bit more than that. And the total budget still does remain, including the contingency, at around $50 million. A couple of the expansion items are very, very close, it's not already completed. And the last item, thickeners are to be completed in late Q4 this year. The expansion is expected to allow the orders on a mill to achieve processing throughput of 10,000 tons of ore per day.
They've also done some work on the Phase 2 expansion of the PFS, it is well underway by Micon, and is expected before the end of year. And this Phase 2 expansion is really contemplating what an expansion scenario would look going from the what is over a 130,000 ounce of annual production up to 200,000 to 300,000 ounces of production.