Explanation Of Following Mill Report
The following Discovery Day mill report was for the period from 9/5/96 through 10/31/96. The days from 9/26 through 10/5 show the best production for the previous operations from ore located in the Discovery Day workings. Over the eight days during that period that the mill was operating it processed 195 tons of ore that averaged 12.06 opt including 43 tons averaging 37.4 opt. This brief period of production resulted in over 2350 ounces of gold worth over $4M at a $1,700 per ounce gold price.
This ore came from the “490” area of the mine with. The majority of the other ore processed through the mill was “ run of the mill” rock taken out for the underground development of the haulage adit and had little if any gold value.
This “490” area is the main area where initial production is expected to resume. Work will begin from this point with drilling of the vein in all directions to determine its extent. There are several other zones that have been identified which may prove to connect with this structure and carry similar ore values.