CRA - Recovery & Improvements11 Oct 2018 13:06
Operational Updates RNS - Extract
Kevin van Wouw, CEO of Cradle Arc, commented:
"During Q3 2018 and subsequently, we have been constrained by intermittent equipment breakdowns and sporadic interruptions at Mowana's processing plant, which is ten years old and is being rehabilitated following a period of care and maintenance. Over this period, we have been able to identify weaknesses in the design and condition of the existing equipment and formulate a remediation plan involving the targeted application of funds raised from the Facility to repairs, the acquisition of spare parts and the installation of standby equipment/redundancy*.
"We strongly believe that the progress we have made in our open pit mining activities within the North Pit and the North Rim Extension, combined with the proposed rehabilitation work to the processing plant, will enable the Company to achieve a significant improvement in throughput and hence recovery in Q4 2018 relative to its Q3 performance.
"As set out in the Company's previous operational update of 25 September 2018, we have developed the orebody to the extent that we now have access to a large amount of transitional and supergene ore, which is anticipated to deliver improved recoveries at a reduced production cost over the remainder of the year and all of 2019. The plant improvements that we will be making over the coming weeks should result in the stabilisation of operations, improved copper recoveries, and ultimately increased production."
*In engineering, redundancy is the duplication of critical components or functions of a system with the intention of increasing reliability of the system, usually in the form of a backup or fail-safe, or to improve actual system performance.
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