Member Info for itsaduster

Thanks M8 AR is certainly a sweet mine. It is clearly a nice easy cheap operation.........Opencast heap leach is ideal low cost set up...........and is the refuge of Mine Planners of low grade monster ore body Mines......... 150,000 tonnes year Low cost production secure and divi apparently in sight. KGI is a very different proposition and Mine parameters couldn't be more different. The main mining method is cut and fill which is as high cost as you can get as you have to build the stopes and their ore pass systems as well as insert backfill when ore is extracted. Also to lay out the access development is very expensive so up front costs are huge before ore flows from attached developments costs. But we have done all that so it is behind us and we have paid for it mainly from production proceeds ( some initial capital from early share issues ) So no debt. From this stand point we are on the verge of producing 150,000 oz a year At 15 gms / tonne it is mining 10 x richer than AR and could mine richer. Many of our costs ( which were set up costs ) are behind us. They have been included in our costs per tonne but now are falling away........so production costs will fall dramatically. When this shows in quarterly reports I believe this will cause a reassessment of our SP.........usually it will require 3 quarterly reports but the change may be so big that it may move sp quite sharpish. So two very different mines and two very different grades. AR is the easier safer Mine Thanks for heads up Maybe we can persuade the poster to do consider the KGI prospects and KGI graph which also looks good AIMHO and KGI

Nice piece in Shares Mag on price of gold today. You will pay a higher price if you buy gold physical today that if you buy it for 3 mths time. I believe they call this contango and is very unusual for a commodity like gold with little industrial use. The meaning is there are people who need physical gold today so bad they are willing to bid the price up beyond its 3 mth future price. He says one of his rules is don't sell a commodity in contango !! so there !!

Buying opportunity ???? For some........DYOR AIMHO

Only cold on surface ..........underground the problem is to much heat and usually to much water. Your driver here mogo is the re-alignment of the effort on the mine. Over the last 10 years they have developed huge long haulages xcuts raises and equipped them with electric cables fans drains and roadways or tracks. They have built a new hoist house and installed a new hoist. Also remodelled the shaft to add a new hoisting compartment and take much bigger skips so each trip up the shaft carries much more rock. A massive drilling programme has been on going ( I mean big ) so that we now know where the ore is and the value it carries in each block of ore reserve so we can mine to mine grade.........And we have gone on mining so this has all been paid for to an extent out of mining proceeds...........or put another way we are debt free by Xmas even having bought out the next door ground for $60 M . I would suggest only half the expenditure and effort of the mine has been directed to mining, whilst the other half has been going to mine build and upgrade and ore reserve delineation. Now all that effort to upgrade, mine build and create ore reserve can now be eliminated with a relatively small percentage directed to replenishing ore reserve as we mine it. Imagine what a huge saving that will be and how that will effect the mining costs. Then what price will the analysts put on us ? Note South African deep level gold mines such as are left have mining costs approaching $1000 oz..... smoking !!!!!!

410 p by Jan next year and 800p or 900p by this time next year ?? Anyway that's the projection I am working to and I think regardless of gold price. AIMHO and DYOR. When I was working on cut and fill the big pain was getting the ore pass liners into the stopes . One day to get a liner underground and a whole day to get it into the stope then another day to weld it up. I wanted to have them cut vertically into quarters and have flanges welded on. Then they could be taken underground, into the stopes and bolted up all in one day using a 2 man crew and they are no more vulnerable to blast damage. I don't know what KGI do on construction but we can hope they have better Managers than I had when I started U/G work. Of course I assume they read this board.

Check out the graph ...........gotta be 420p soon

Never seen good volume here mogo. I think the top volume I have noticed is around 15M. I think most of these shares are ''probably'' held tight by Institutions and Mining orientated PIs.......that's my guess reading. They do seem to like to spook us from time to time and again my reading is that they are happy to see shares migrate from loose holding PI s. As they say ''' I 'm luvin it '''

We are selling TAX LOSS here not gold anymore I think that is why Mr Fox is buying for his family

You are right to be churlish and sceptical......but last bit of fat to chew.......with QE on the move the wrong way this share price is going the right way. Note two high flyers from '' RED LAKE '' here now ?? They don't waste their time nor indeed does Harry. The new shallow development is the big news here.........low cost !! shallow inclines from surface and trackless mining to start and high grade ( not as high as our deep levels though ) and If the switch to Mining focus has escaped everyones gaze then these shallow high grade samples havnt. I am looking for T/O action within two years and my price is £20. We shall see AIMHO of course and DYOR Have good week end !

I agree with Riddler on the cost of mining as was .............but we are into new game now as mine becomes ''Mining focused'' rather than Exploration and development and shaft upgrade focused. ref RNS As this beds in the cost of mining will drop. A good proportion of our stopes are cut and fill I think and this is rather more expensive than say longwall stopes with pack support. I say this because of the devastation caused when our backfill feed from surface was cut by the collapse of the borehole to surface which brought the back fill material to the stopes. Also I saw in the early days a report on the lithology of the hanging wall ( tuffaceous which I have personal experience mining .......nasty !! ) and I remember the agony developing the remote drilling machine ( protection from poor hanging wall conditions ?? ) We are now on that change over now so the numbers will improve from here and analysts worth their salt will be making their choices. I have been accumulating for a while now from 200p to 230p. With our grades I don't think we are grade dependant at Moment and now with prospect of a whole new mine at 30 gm/ton starting at 50 feet down !! Well go figure as they say. Yum Yum

Once the Mine is production focused it may be possible to get higher production from the live stopes and that may reduce the amount of supervision required. I don't know but I think many of our stopes are cut and fill which isn't the cheapest of mining methods. Even the shallow resources being developed on the newly acquired properties show dips of 65 to 70 degrees. That will make for expensive development but medium cost mining. Nice if they can use a raise borer though. All the above is guess work on my part and the rest is AIMO

Not all bad..........I seem to have 4x the shares I used to have at a quarter of the money ..........so if you can these plunges can be quite good. Of course there is luck involved as in my case a really hot prospect cropped up encouraging me to sell at anout 11.00 sp Then price dropped serious and I looked again and saw 1) A management set up which had successfully installed a huge redevelopment with new mining systems, new hoisting and soon an upgraded extraction plant. Frankly I have been quite impressed once we got over the initial obsession with tracked drilling machine and gone to a more appropriate mining method. 2) A high grade ore resource which will allow choice of ore day to day.......and lots of it....? 3) Now we are getting sample drilling pulling cores from minus 70 ft at grades of 30 g/t plus........a whole new mine. My only concern is the high number of stopes open at any one time.........It is a big supervision job to exercise adequate control. They are countering this with a strong element of training to support the supervision. As the capital expenditure program takes less Management resource and there is a scaling back of exploration drilling and development can be scaled back to present to stoping to match the stoping depletion we will get a realistic view of the cost of mining. I would not be surprised to see $700 to $750 oz We could have sight of this early 2014. The next foot to drop resulting from this gross build up of cash will be payment of a divi That's pay day folks. There wont be a lurch north because Management are preoccupied with metal price at moment but that will pass. This has been a real pleasure to be with, watching the Mine build and seeing the very real talent being engaged to build the mine and under quite tricky conditions.

It will have its day..........divis will start soon possibly next year

Clear walked it down to let the new boy in. sorry IMHO and DYOR

disagree Dude ! KGI is on a re-rating..........200p was just plain silly. The phase we are in now is the fruition of 10yrs hard graft...........we have ore reserve of the 5 million oz and we are well past the 100,000 oz/pa. So that sound you can hear is significant mulla going KAACHINGG as it hits the bottom line. Check out graphs ......they dont go straight up but take time out to wiggle. On a wiggle just now. Quarters with Uge profits in work in progress right now.........IMHO and DYOR Price of gold ?? not such a problem for us now........but we are close to a support line now and if it holds price should firm up. Our grade puts us in a decent position........we hope

I dont know if you are a miner but in case you are only focused on charts I suggest you have a look at some of the RNS releases..........Take an historical perspective perhaps and read over the last say 3 years. This will show how they have built the mine, progressively building up production with a big capital spending program. The mine is debt free except there is a loan note out for something like $60m which was drawn to buy the next door neighbour, bought to chase grades across the boundary. Tonnage is increasing as is product, I believe well over 100,000 oz / year as we speak and headed to 180,000 oz / year as we speak............and grade at around 18 g/t Cost of production has been very high but this is coming down rapidly as production ramps up. Possibly around $900 oz now and as tonnage rises cost per ton will tank as only marginal costs will apply to the extra tonnage. Chance of a lifetime two weeks ago........still a very good buy and as far as I am concerned it is on its way up to sp of £20 and then a takeover

Thanks mate. Phew !! doing well here and I am not used to it after the last year

You were referring to other GM shares which you expect to move later..........care to name ??

We have a mine producing at 100,000 oz and now with all the plant and systems installed to take it up to 180,000 oz /year.............no significant bank lending............and ore reserves in total of all classes approaching 5 million oz market heavily against us with gold price pulling back to long term trend line with an expected rebound ...say in november and this putting down pressure on sp down by 80%. I see take over bid within 18 mths.

If it falls further thats fine ......always happy to buy a quality piece of ground on the cheep