Member Info for ID78

I was thinking it would be good for the mine data to be reported in a standard manner each month.

mining operations:
ROM = XXXXX tonnes (and report grades, perhaps even tonnage at high grade and tonnage at low grade)

Plant processing:
CIL = XXXXX tonnes (and grade) with % recovery
Tailings = XXXXX tonnes (and grade), with % recovery
HL = XXXXX tonnes (and grade) with % recovery

Gold on carbon for refinement = XXXX oz

Elution, refinement:
XXXX oz was processed resulting in gold poured of (presumably the same amount)

Gold sales:
Gold sales = XXXX oz

Ore stockpiles:
Current ore stockpiles =XXXXXt (and report the grade)

This tells us pretty much everything and maybe saves time thinking what to write. Clearly if one area is underperforming state it and what is being done to bring it up to speed. If an area is posting record amounts, state it too (report the successes)
It could also be useful to post alongside each result what the previous quarters numbers were for comparison.

Just a thought

I don’t know that I’m knowledgeable, part of my posting so much is to try and understand what is being communicated to us, and also so everyone else can correct me where I am not understanding something!

The low gold sales were concerning so I felt I really did need to understand what is going on at the mine. As I’ve said already, having done this I have some confidence in the team and what they have achieved.

@Aprogerson

Processing capacity you say = 45kt (until decoupled)
ROM last quarter = 44.85kt

Coincidence? ….I dont think so. This really does answer so many questions for me.

So until tailings and CIL are decoupled (or HL pads are commissioned) the gold on carbon will not improve significantly from the 2000oz.

Last question is why the gold sold is low in comparison to gold on carbon. Again I think this answered by the elution plant and it’s upgrade.

Glad you are here aprogerson!

Aprogerson, well spotted. I read that and ignored it. The tailings are to be decoupled from the CIL. Currently it processes the lower quality ore that is left after the CIL process, however that low quality ore first passes through the CIL and uses up some of the CIL 500tpd capacity that is better used to process the high grade ore.

As you say 45kt a quarter is possible until these 2 are decoupled. Well spotted!

Of course, they processed 54kt last quarter, which is higher than can be processed as the plant is currently configured. I’m slightly curious how they achieved the additional 9kt in the last quarter. Perhaps they could load additional (stockpiled) low grade ore to the tailings in some way even though it in theory runs off the CIL. Pass, I don’t know the answer to that one!

Again great post, Apro

Wrote that on my phone in the gym, so a pretty poor post but hopefully most of the points come across.

Robbie, if reading this- next update is on the EMR. Could you maybe (in that RNS) clarify what I’m is happening in the mining, ore processing and refining at Kilimepesa. As you can see there is some confusion and conjecture…

Great post Apro, and it looks like you have come to some similar conclusions to me (tho somewhat more concisely).

One thing, you say ore production (ie the first step, the mining) is the bottleneck. And the ore mined IS less than processed by the plant, so I would agree with you. But on the 3rd Feb it was stated by RNS

‘· Run-of-mine (ROM) production from the existing open pit and underground mining operations already at levels to support a 100% increase in the milling circuit capacity from 500tpd to 1,000tpd.’

In theory the mining can support the 1000tpd that the CIL and tailings can currently process. Why is the ore mined significantly less?

Is it because the elution and refining works needed the upgrade to be able to keep pace? The rest of the operations were therefore scaled back?

As you say, it looks like a consistant 2000oz can be produced a quarter, with three plant working at closer to 2/3 capacity.

-2000 oz is maybe $1.8mill profit in a quarter?
-So $7.2mill profit on gold sales per annum?
- They should be capable of 3000oz per quarter, which is nearer $11mill in PROFIT from the gold sales
- The there is the additional upgrades you mention, which we need more gold for (as has been discussed and should haopefulky be proven)

There is The MCAP at the moment is a bit crazy when compared to $7.2 mill in profit on gold produced.

I am strong uk come if to the conclusion the gold sales disparity (1226oz sold vs 2000oz processed) is due to the elution plant upgrades end of last year / start of this year

Itsyou- thank you for the response to my ramblings.

I’d be curious what the upgrade has done to the current elution plant in terms of what can be processed.
Also, what is happening with the new elution plant. It seems we need it if the elution plant is the link in the chain preventing the rest of the mine from operating at the levels that it is capable of.

Robbie had to make me work to get to the bottom of this, the Q1 update could have maybe have given a bit more detail. Anyway; I am more relaxed now I understand what the issues are.

Hmm update 3rd Feb says the ROM is capable of supporting the processing.

Seems to be mine infrastructure and/or elution and refinery that prevents the processing of 1000tpd.

The update 3rd Feb still discusses the new elution plant.

*Ore mined in Q4=38.3kt, in Q1=44.5kt

- ore MINED = 38.30kt, Q1=44.5kt
- Ore processed in CIL and tailings = 51.7kt (Q4) and 54.1kt (Q1).
- So more ore processed than mined.
- CIL and tailings processing capability is 1000tpd, so about 90kt per quarter.
- output is held up by mining activity not by the CIL and tailings plant

- In Q4 gold on carbon was 2088oz, but only 1047oz sold.
- Elution and refinery plant shut down for upgrade end of Q4.
-Does this explain the lack of gold sold? It couldnt be refined and poured due to plant upgrade?
- In Q1 gold sold was 1226 oz…. Again did the plant upgrade affect this?

- In Q4 it was stated new elution plant due in Q2. No mention of this in the Q1 update, so delayed/plans changed?

- In Q1 we are told heap leach project to be completed in Q2, so all HL pads to be complete in Q2. that should increase Q3 gold numbers (due in Q4)

- Also told the pilot heap leach pad was processed by existing elution and refinery so the upgrade is compete?

- In Q4 we are told 6000t of 6.3g/t stockpiled for processing in Q2.
- This is 1157oz gold, assuming CIL processing (80% recovery) this is 926oz, from just 6000t.
- Plant should process another 50000t in Q2, but lower grade. So Q2 results could show an improvement to Q1 boosted by the 6000t at high grade?

All food for thought. Bottlenecks appear to be;

- mining enough ore
- elution and refining of the gold but this has now been upgraded

With regards mining, open pit has made a big difference and now providing more ore than the underground mine. The ore from open mining in Q1 increased by approx 40% on Q4. Hopefully we see the same %increase again for Q2 vs Q1.

The underground mine produced similar ore tonnage in Q1 to Q4, despite a 775m mine development slowing things down in Q1. Given the mine improvements slowing mining underground I’d say they did well.

So. Clearly more ore needs to be mined. The open pit %increase of 40% on Q1 is considerable. Hopefully the underground numbers also increase significantly and the plant can process closer to the 90kt capacity.

I’m not sure what the capability of the upgraded elution and refinery is. Is that also a bottleneck even despite being upgraded? There is / was plan for a new elution plant although the last update did not mention this…. Robbie did say all areas stress tested so presumably the upgraded elution and refinery is capable for now if the new elution plant has gone quiet….

Just my thoughts :)

Only one share, I’ve been mulling over the numbers.

The tailings capacity 500tpd, the CIL capacity 500tpd.
Q1 was 31+31+28=90 days.
Combined capacity = 90 days x 1000 tonnes = 90,000tonnes

The ore delivered for processing is half that.

The plant capacity if there. The mine infrastructure is not yet able to back it up, I think.

Part of Ph3 is to improve mine infrastructure (mine more ore presumably)

There is a little confusion.

It would be useful (to me) for Robbie to clarify what the mine is currently capable of processing per month, the mix between tailings and CIL and why if the capability of the mine is 2000 oz per month, why is the gold sales are closer to 1000oz for 3 months.

But the interviews are done, hopefully the Stockbox interview answers some of this. If not the next clue to progress (albeit on the resource to be mined) is the MRE….

I hear you on the cash position.
- On drilling, 2/3 of the initial drill holes are complete.
- On production expansion 2 heap leach pads are just about good to go.
- Once I use we could be at 3000 oz a quarter, 12000 oz per annum
- That should pay for any drilling and I hope (if needed for additional HL pads
- The expansion of the CIL and tailings production - this is where I suspect money is needed.

Again wait and see, however I being in the cusp of production from the HL pads helps boost the cash position. ..

The align research note states 61,462 oz measured. HOWEVER that is for all of Kilimepesa, perhaps the hill is 13,000 oz measured?

But I do agree lack of sampling is likely the reason for the modest JORC levels.

I don’t know why they would expand the drilling on the hill if the results were bad…

Oops last 2 paragraphs I meant to delete, I hate posting on my phone.

Ignore the last 2 paragraphs, sorry

I don’t think there is anyway of getting all the results. If I can count, and it’s very questionable…

51 holes have been drilled analysed (4DD, 47RC)
9 holes drilled and not analysed (6 RC, 3DD)
17 holes planned (10 RC, 7 DD)
(And there are now another (new) 16 target holes)

The update in June really should cover 51 of the initial 77 holes, 2/3 of the initial targets. So it will tell us quite a lot. Will the update be a good one? The latest update (last week), Robbie stated the results from drilling were as expected, I’d take that to be positive. Time will tell if that is true, however, the strike length has been increased with 16 new target holes. I’m taking this as a positive. If the drill results were poorer than expected would they expand the strike length?
I’m expecting a decent update and not a poor one. Wait and see…
.

much of the first drill locations (of which there are 10 targeted locations).

I remember Robbie saying he wants the total resource increased, the quantity, and somebody else wanted the quality (so inferred turned to indicated and measured).

I was in a rush, I just re-read your posts Legalwolf.

HL won’t be in the next update then. Q3 update, as you say.

My 3000oz (for Q2) is based on current CIL and tailings adjusted to the stockpiled 44.8kt that is higher grade. … and 2 heap leach pads.
In other words it assumes 2 heap leach pads commissioned but no improvements to the CIL and tailings capacity.

I included Apro’s changes to my calc, I went in the middle assumed 50\50 split between CIL and tailings with the 80% and 52% recovery factors.

IF the 2 heap leach pads get through the 22.7kt stockpiled ore and IF the mined 44.8kt not yet processed (at higher grade) is processed then my calculations of the combined gold produced is 3000oz for the next quarter.

For investor confidence the next mining update, which is a good 3 months away presumably, really does need to reflect the progress we are being told is being made at the mine…