Dated:
December 2011
Pro Forma Gold Production:
* 2011 - 7,746 Au ounces
* 2012 - 30,146
* 2013 - 43,583
* 2014 - 51,748
* 2015 - 69,560
``Gold oz. Cash cost to date $647``
That seems low for early stage numbers, and especially relative to the estimate given by CEO in the recent video presentation. Hopefully it is an indication that December progressed better than anticipated, at least on the cost efficiency front. Hopefully it was driven from successes with their new selective mining approach, which focuses mining efforts on isolating grade categories. They stockpile the ore into grade categories, and feed the heap leach pads based on the grades they would like to process at any given time. Eventually, they will process the lower grades (the ones above cutoff), but they will process them differently from the average grades and the higher grades. They will load the lower grades in a far bigger batch - far far far higher pile on the pad relative to when they process the average or higher grade ore. I think the idea is to allow for better economies of scale processing with the lower grade, in hopes of them contributing at a more economical level to the bottom line.
Anyway, per the last report, I think they were estimating .57 g/t with the ore residing on the pads (represents average to good grades for this type operation). This could also be a contributor to the better than expected cast cost (if true). Another contributor could be higher recoveries. I believe they were hoping to see a 50% recovery rate. Per the previous report, the numbers worked out to them expecting a 60% rate. There is not enough info to assess if this is sustainable on a more longer term basis though.
I think the CEO was hoping for $750 - 850 range in the second year, with it being slightly higher in the first year.
``Mar.2012
* Initiate 18,000 meter RC drilling program``
``Jun.2012
* Begin mining of Jojoba (NE zone) deposit``
``Aug.2012
* First recalculation of property-wide mineable reserves``
https://www.nwmcorp.ca/investors/pdf/nwm-corporate-presentation.pdf