Some answers to our concerns about Mar Qrt

Since the release of the qrt report, I have talked to a few ppl and also fortunately got the reply from the company.

Here is some useful info I got back that hopefully will address our common concerns from the other post.

1. Greenfield low grade
We are actually mining through the low grade part of the ore body. The March qrt result is within reasonable expectation. i.e. exp 0.9-1.0, got 0.83, rather than exp 1.2 (GF avg), got 0.83.
Grade control drilling is for deeper part of the ore body. As per ASX rule, we will not hear any result unless it significantly changes the reported ore reserve. So no news is good news.

2. Greenfield hard rock
Greenfield has one of the hardest rock in Australia which is already known from previous campaigns. The ore we got this time is no harder than before. Also out of the remaining 3 pits, CNX is hard and BVUG and Brilliant OP is softer. So basically we have will have ~100k (25%) production from more challengable operation which is known to the management during the planning stage. During previous campaigns, one of the solutions is to mix some of the soft ore with hard ore. Hence now I can see the additional reason that we are moving forward BVUG schedule, not only just to improve grade but also to reduce hardness as well.

3. Crusher circuit design
On planning level, the crusher circuit is designed to process 1.4Mtpa which is more than enough to cover our 1.2Mtpa mill. It is also designed to process hard rock like Greenfield (3 tier crusher etc) and the construction is sound and has met the design criteria.
On operational level, the crusher has proven to be able to handle Greenfield hard rock. However it does require high standard of execution. Improvement of availabity is on-going as suggested in the qrt report.

All in all, the current challenges we face were mostly anticipated and addressed during the planning stage. Operational level optimization does require time as any other new mine. Management has been on top of things and addressing issues reasonably quick. Communication to small SHs however is as poor as always and way below par. Project is still sound at current POG. Let's see how Jun qrt fold out.

GLTAH