As quoted in the press release:
In 2013, Galane carried out an exercise to review the potential of screening its low grade stockpiles. The results of this exercise and related test work in respect of the previously disclosed measured mineral resource at the Mupane stockpiles are as follows:
- there are 702,259 tonnes of low grade stockpile at an average grade of 0.97 grams per tonne (‘g/t’), which is located at the run-of-mine (‘ROM’) pad at the processing plant;
- screening the ore using a 40mm screen deck is expected to increase 38% of the stockpile grade by 65% and the upgraded ore would report to the minus 40 mm product size fraction;
- the process is expected to produce an additional 266,858 tonnes of ore at an average grade of 1.60 g/t to feed the processing plant;
- the screened material is expected to have a recovery rate of 83% and as it is predominately oxide in nature the milling rate is expected to increase by 20% due to the size and nature of the material; and
- the direct operating cost per ounce is forecast to be in the range of $600 to $700. Direct operating cost per ounce is a non-GAAP measure. See ‘Direct Operating Cost’ and ‘Cautionary Notes’ below.
Ravi Sood, chairman of Galane, commented:
The commissioning of the screening plant is an important part of our current five year plan and a key component of our ongoing effort to decrease production costs.
This represents a testament to the experienced and innovative management team we have put in place and their commitment to making Galane a long mine-life, low-cost producer.