We're really dealing with three separate values in a mere four lines. Once again, here is the relevant section from the June 28 MD&A, page 4:


For the year ended February 29, 2012, the Company mined 89,903 tonnes and processed 95,811 tonnes of ore at an average grade of 3.264 g/t and produced a total of 10,906 oz of gold dore at the process recovery rate of 79.8%. The Company shipped a total of 390.612 kg of gold dore to Johnson Matthey, a gold refiner located in Brampton, Ontario (9,870 oz were settled and 280 oz in consignment with Johnson Matthey.)


  • They "processed 95,811 tones of ore at an average grade of 3.264 g/t" I assume some ore was already stockpiled at the beginning of the fiscal year. 
  • It goes on to say "and produced a total of 10,906 oz gold dore". This is from the 95,811 tonnes of ore. How do we know this? Because they are next to each other in the same sentence.
  • New sentence, "The Company shipped a total of 390.612 kg of gold dore". This is equal to 12,558.48 t oz. So, the amount of dore shipped is more than the dore produced. Why? There is no explanation offered, but perhaps the Company had gold dore on hand at he start of the fiscal year. That's just a guess.
  • They then go on to state that "9,870 oz were settled and 280 oz in consignment". And I agree with you that this is probably fine gold.


So, you have three different pipelines. One for production dore, a second one for shipped dore, and a third for settled/consigned gold. And when the fiscal year started February 28, 2011 they were all at different stages. They didn't start mining operations on Feb 28. In order to solve for the unknown dore purity, I focused strictly on the production pipeline, because with tonnage, grade, and process recovery rate all known, it's easy to solve for the unknown, i.e. total gold recovery. Once you know the total gold recovery, you simply divide by the amount of dore produced to arrive at a percentage purity.That's what you see in my earlier posts.


(95,811 tonnes of ore processed) x (3.264 g/tonne) x (79.8% process recovery rate) = 8,203.4 oz gold. Given the dore produced at 10,906 oz, the percentage purity is 73.57%. Remember the ore processed, grade, process recovery rate, and dore produced are all included in the same sentence. The dore shipped is in the next sentence entirely. And the settled/consigned fine gold is in brackets. Three pipelines. Three different aspects of operations.