ORONTO, ONTARIO, Aug 16 (MARKET WIRE) --
Pacific Gold Corp. (Reuters Article)
http://www.reuters.com/article/2011/08/16/idUS136931+16-Aug-2011+MW20110816
Mining Plans
Nevada Rae Gold, Inc. has measured its next 3 mining blocks to be mined
and processed in the third and fourth quarters of 2011. These blocks are
estimated to collectively contain 120,000 cubic yards of gravel and the
Company expects the grade of the next 3 blocks to be approximately 0.4
grams of gold per cubic yard ("g/yd3"). It is possible that the gold
grade per yard could vary as this is the nature of alluvial deposits.
Grades will vary over time as the Company mines all of the Black Rock
Canyon Mine ("BRCM") claims and leases.
The Company has rented a small fleet of equipment from a large heavy
equipment manufacturer that includes a track dozer, two front end
loaders, three 40 ton haul trucks, a motor grader, water truck and
hydraulic excavator. The Company plans to use this equipment at least
through the end of 2011 and then adjust its equipment requirements based
on its mining plans for 2012 which will be determined late in the fourth
quarter of 2011.
July Production
Production at BRCM since July 13th has totaled approximately 9,600 tons
or about 6,500 yards of gravels. The processed gravels comprised the
entire remaining stockpile at the BRCM as of June 30th. Included in the
stockpile were mostly those gravels which the Company has identified as
'mudflow' as well as a limited amount of gravels that the Company
considers normal 'pay' gravels (gravels that the Company has identified
as its main resource). From the stockpile gravels the Company produced
approximately 30 ounces of gold. The overall gold grade of the stockpile
amounted to approximately 0.2 g/yd3. The mudflow which was a large
portion of the stockpile had an average gold grade of about 0.1 g/yd3.
The grade of gold within the pay gravels of the stockpile were between
0.3 and 0.4 g/yd3. Due to the commingling of the gravels over time (the
stockpile was mined in 2007) an exact number for the pay gravels was more
difficult to determine. The stockpile was mined mostly from the mudflow
section (the mudflow being discovered by the Company through a seismic
study on the drainage area) as part of a previous plan by the Company to
test the gold grade of the mudflow, as this area was not previously
mentioned in the historical reports describing the claims and leases of
the Company. As a result of now processing a section of the mudflow and
its apparent lower gold grade, the Company has decided to not currently
mine any more of the mudflow material but to focus on its' previously
identified pay gravels for the remainder of 2011. Depending on the world
spot price of gold, the Company may return to new areas of the mudflow in
the future. The mudflow is located underneath the pay gravels in the
deposit and is relatively easy to bypass when mining.
Plant Operations
The Company is pleased to announce that the plant is now operating more
efficiently. So far in 2011 the plant has operated 19 out of 20 possible
operating days and averaged about 500 tons or 350 yards per day. The
Company has limited the feed rate to the plant in order to make sure that
the plant was operating properly during an extended period. In August and
September the Company plans to increase the plant throughput gradually on
a weekly basis with daily targets of 750 yards by the end of August then
up to 1,000 yards by the end of September, eventually to as much as 95%
of plant capacity.
PCFG estimates that total Company costs, including production and SG&A,
for operating the BRCM should not be more than $270,000 per month from
August to December 2011.
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