New Guinea Gold is the next big gold producer

New Gold Producer in Papua New Guinea with approx 1 million ozs in gold equivilant resources, and targets exceeding 5 millions ozs

Free
AGORACOM NEWS FLASH

BREAKING: Esports Entertainment Group Releases Upgraded VIE.GG Esports Gambling Platform

  • Announced the release of the latest version of VIE.gg (https://vie.gg)  the Company’s esports wagering platform
  • Latest upgrade delivers notable new features, including additional betting options such as Fixed Odds, Pari-mutuel, Fantasy and Pool Betting to complement main P2P option
  • Grant Johnson, CEO of Esports Entertainment Group, stated "This is another major milestone for our Company. This is our strongest release ever, with every new feature esports gambling enthusiasts could wish for in a platform..."
Message: SEDAR MD & A out

I read through the report - out 30th April.

Whilst all credit to the company for continuing to try, their own indications of future production are low, recovery is only 66%. They are looking at re-crushing material from the VATS, and tellurian extraction. they've bought lots of machines ans say they are geared up to work effectively.

The new method being investigated could be much much faster (as I read it, 48hrs rather than 12 months - my mistake?)and has higher recovery, and would cost $5-7m (NGG mcap C$18.7m).

Can they actually mine it and produce significant amounts?

I might hold my samll amount for a while, as they've done so much work, perhaps they can turn this around. Don't know. Certainly the share price is pretty low at present, so probably worth holding.

The person who tried to have a special general meeting - he only owned a few shares, and never gave any details of any other shareholders/holdings.

##########

$17m - not far off market cap

Initial Exploration Target for sulphide mineralisation at Sinivit is defined within a zone 750 to 1,250m long, averages 3m wide, extends to 300m depth and grades between 10 and 12g/t gold, 1% copper, 400ppm tellurium and 100g/t silver. The initial Exploration Target thus contains between 640,000ozs of gold, and 20,000t copper, and 1,200,000ozs gold and 30,000t copper (plus possible credits in tellurium and silver).

c1 moz at 12g - pretty good, plus a few 100koz already, but at less than 10koz a year production, that's more than a 100 years of mining.

at 28th Feb - 15,486 oz leachable gold in vats -

#############from report

Quarter 1 - 1327 ozs gold and 186 ozs silver

Quarter 2 - 2246 ozs gold and 232 ozs silver

Quarter 3 - 1857 ozs gold and 344 ozs silver

Quarter 4 - 884 ozs gold and 206 ozs silver

Gold production in 2009 continued to be lower than expectations. The reasons for low production are described below (some of which were also operative in and described in the MD & A for 2008).

Some of the measures adopted to improve performance at Sinivit are described below:

6359 ozs gold and 968 ozs silver1. As mentioned in the section “Overall Performance”, production was severely handicapped by a dispute with our former Mining/Earthmoving Contractor. This caused a total disruption to mining and crushing in July and August 2009, and the recovery and replacement plan was implemented in the Third and Fourth Quarter of 2009.

2. Excessive rainfall restricted earthmoving, crushing activities, and vat construction. To put this in perspective, parts of New Britain Island have recently received the highest and most intense rainfall in 30 years.

3. Crushing capacity and vat construction was inadequate to provide sufficient tonnes of ore leaching in vats at any time to produce the forecast gold production. Additional crushing capacity comes on line in late April 2010.

4. NGG, in 2009 was markedly short of cash and capital. The project has been undercapitalised which led to management adopting an “on time” basis for critical stores. Because of the remote location, when critical stores did not arrive on time this lead to delays in processing, crusher maintenance and vat construction.

To a large extent the operational problems have been alleviated by the private placement raised in late 2009 early 2010.

However, the impact of those funds has not yet been “felt” in gold production.

By March 2010, the Company had sufficient equipment on site so that mining, vat building and filling requirements are less restricted by wet weather.

1. In October, NGG acquired two CAT 730 6x6 articulated dump trucks; one Hitachi 450H 45t excavator, and one CAT D5G bulldozer. NGG now owns this equipment subject to a business loan of Kina 3 million with the Bank of South Pacific, repayable monthly over 24 months. The previous loan from the Bank of South Pacific has been fully repaid.

2. We have since then added, as NGG fully owned equipment, a further D7 bulldozer, two further CAT 25t excavators, a CAT grader, a CAT tool carrier, and a further CAT 730 6x6 articulated dump truck. This equipment was on site and operating in early March 2010.

3. The additional cone crusher purchased mid 2009 (and owned by NGG) has been refurbished, has arrived at Kokopo, and should be on site and operating in late April 2010. This, together with a more extensive crusher parts inventory should substantially increase crushing capacity by Second Quarter 2010.

Production, as originally envisaged of 2,500ozs to 3,000ozs per month will not be achieved on a consistent basis without a change in the processing method. The VAT leach process we are using has been shown to have significant shortcomings in difficult terrain and high rainfall areas.

As previously reported, NGG is studying converting the processing route to a variation of CIP, which we have designated CIC or Carbon in Column. Basically this would require us to mill new mineralisation and re-treat existing crushed mineralisation already in vats by grinding in a mill to nominal size of minus 100 microns, leach the gold in tanks, and collect the gold in existing carbon columns. Residue time in tanks is expected to be approximately 48 hours and anticipated gold recoveries by such a process would be between 90% and 95%, rather than the present 60% to 70%. At present it takes up to 12 months to extract all recoverable gold from a vat. The capital and operating costs required to effect these changes are being assessed to determine if we should proceed.

Management cautions that to implement these changes will require additional capital of the order of Cad$5m to Cad$7m. NGG does not have this cash at the present time.

TOTAL 6359 ozs gold and 968 ozs silver

Mining and Gold Production in 2009

Share
New Message
Please login to post a reply