Komet Resources Announce Progress and Planned Development at the Guiro Mine as of the 2nd Quarter 2016
Komet Resources Inc. (TSXV:KMT) announced that the mining of the underground mineralised gold vein that started less than 6 months ago is now well on track to meet its target of 100 daily tons of mineralised material delivered to the plant each day.
Komet Resources Inc. (TSXV:KMT) announced that the mining of the underground mineralised gold vein that started less than 6 months ago is now well on track to meet its target of 100 daily tons of mineralised material delivered to the plant each day. These new developments, the efforts made to upgrade the underground infrastructure during the first quarter 2016 as well as the expertise of our mining engineer with 30 years of experience have resulted in the preparation and development work now being 90% completed.
As quoted in the press release:
The gravimetric plant has seen continuous improvements: the energy production has been stabilized with the addition of the new 450 kVA generator unit, the new centrifugal concentrator was delivered and is currently being installed and the ball mill is being connected and put into service. In order to complete the initial phase of the upgrade to the gravimetric recovery circuit, the purchase and installation of a third Knelson concentrator, that will allow maximising gravimetric recovery, as well as an intense leaching reactor (ILR) that will allow processing of the concentrates, is still scheduled for the third and fourth quarters of the current year respectively. It is also worth mentioning other major additions made since the beginning of the current year, including the lab’s fire-assay equipment and a new high-performance compressor.
The workforce now totals 150 employees, the majority of which come from the neighbouring communities.
March and April 2016 Production
March and April production of gold doré was about 7 kg, including 4.4 kg in April. Fine gold (24 K) was calculated by the Bureau des Mines et de la Géologie du Burkina Faso (BUMIGEB) to be 6.395 kg prior to export, including 3.987 kg in April. The break-even point of all operations in Burkina Faso is between 3.5 kg and 4 kg of fine gold per month at the current market price. It took less than six months of pilot production to generate a positive cash flow in Africa.
Private Placement 2016
Komet is expecting to close in the next few weeks a second tranche of the current non-brokered private placement, which can reach a maximum of $5 million. As announced on April 29, 2016, a first closing was done by issuing 1,820,846 units (the “Units”) at a price of $0.33 per Unit, for total gross proceeds to Komet of $600,879.13. Each Unit consists of one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional Common Share of the Corporation at a price of $0.45 for 12 months from the closing date of the private placement (the “Closing Date”). Securities issued under the private placement will be subject to a four-month hold period from the Closing Date. Komet will use the private placement proceeds to fund the acquisition of important production equipment and exploration work on its property.