Komet Resources said that the mining of the underground mineralised gold vein that started less than 6 months ago is now well on track to meet its target of 100 daily tons of mineralised material delivered to the plant each day. Simultaneously, new miner teams dedicated to material-hoisting are gradually being integrated in order to optimize the quantity of material hauled up to the surface every day and thus supply the plant to full capacity.
These new developments, the efforts made to upgrade the underground infrastructure during the first quarter 2016 as well as the expertise of our mining engineer with 30 years of experience have resulted in the preparation and development work now being 90% completed.
In order to complete the initial phase of the upgrade to the gravimetric recovery circuit, the purchase and installation of a third Knelson concentrator, that will allow maximising gravimetric recovery, as well as an intense leaching reactor (ILR) that will allow processing of the concentrates, is still scheduled for the third and fourth quarters of the current year respectively.
March and April production of gold doré was about 7 kg, including 4.4 kg in April. Fine gold (24 K) was calculated by the Bureau des Mineset de la Géologie du Burkina Faso to be 6.395 kg prior to export, including 3.987 kg in April. The break-even point of all operations in Burkina Faso is between 3.5 kg and 4 kg of fine gold per month at the current market price. It took less than six months of pilot production to generate a positive cash flow in Africa.
The frequent shutdowns for improvements result in the effective production currently being around 60% of the industry 350-day standard of production per year. Considering the actual new process and equipment, the full capacity target of 150 tons daily is still anticipated for Q4 2016. As of the coming fourth quarter, the Company will be able to quantify the overall real production costs of an ounce of gold extracted from the Guiro Mine.