A new low for MTO management and their silver tongued news releases. Delayed production report hidden under drilling results with glaring inconsistancies relating to previous announcements and no explanation of shortfall and no new projections (Lies) about future targets, very troubling indeed.
Production shortfalls can be overcome but GRADE cannot. These results show that the grade is nowhere near what MTO has stated previously. The area that has recently been "mined out" is the same area used to report the bulk sample results. And the "new" stopes on Level 14; there is nothing new about them, except that there is major overburden to consider.
April 29 2013
"almost all of the monthly production came from only level 13....
July 12 2012
The bulk sample has also shown a gold recovery of 97.58% In fact, the sampling results indicate 14.1% more gold content than was predicted...made in the "Main" and "B" veins on level 13.
April 29 2013
As of today, there were only 40 meters of development to complete before reaching the mineralized zones of level 14.
Aug 23 2011
The shaft sinking of 536 feet was completed before the end of July and on budget, including the development of the 2 shaft stations (Levels 13, 14). Over 90% of the equipment required to complete the 5,000 ton bulk sample is already on site.
- Metanor’s management expects to make a positive production decision in June 2012
- Targeting 5000 oz per month production at 800TPD, utilizing 2/3 capacity.>96% recoveries.
- grades upwards of 26 g/t gold with an average grade of 7.38 g/t gold.
- Estimated cash cost of ~US$464/oz gold...
The results 20 months later:
Jan 2,236 oz 5.18g/t 13,871 tonnes 447 tonnes per day 96.8% recovery Cash cost?
Feb 3,017 oz 5.34g/t 18,186 tonnes 650 tonnes per day 96,7% recovery Cash cost?
March 2,346 oz 4.96g/t 15,178 tonnes 490 tonnes per day 96.9% recovery Cash cost?
March 6, 2013 - The commissioning of new stopes allowed the company to deliver a steady flow of ore to the mill.
April 29, 2013 - The last working stope on level 12 has been completely mined out in February prior to the next stope being ready to mine on the same level.
Is this upsidedown? The newly commissioned stopes have been exhausted in one month? New stopes "mined out" with these low volumes and grade? What happened to the rehabilitation and ramp up that took place over 1.5+ years? It is extremely troubling that the rate of milling is so low and new stopes are not yet opened up. The grade will be even lower as they mine through the overburden and struggle to keep people employed, the bonus system they recently introduced is going to backfire big time as the miners see their paycheques dwindle significantly.
Quantity of ore 61% of predicted, grade 59% of bulk sample, real cash costs have NEVER been released, based on past performance they will be much worse than unofficially stated.
Listening to Ron is much like playing the old University Latin word game.
"you can't keep increasing the mine +30% every month" really means
"you can keep decreasing the mine +30% every month" And
"We sold a lot of gold in March" really means
"We sold a lot LESS gold in March"
Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?s=MTO&t=LIST&m=32424920&l=0&pd=0&r=0#TXSoipf47qemyb75.99"