Dr Air Impressive move by Mandalay, makes a solid company more solid if they can optimize the new mine. As to ore sorting for Mandalay, have they spoke of using this, or were you concluding that it may be beneficial due to the 2 different ores? My understanding is that you need a specific set a circumstances to overcome the costs of the technology.
As to my knowledge of ore sorting, I can only speak for Gowest's case. The sorting equip reads the atomic signature on the fast moving ore along a conveyor belt. Airjets reject the wast ore, therby moving the same gold in half the ore.
In Gowests case, it detects the arsenopyrite that contain less then .3gpt gold and rejects the rest. In two Gowest tests, it has proven highly effective at rejecting +50% of the waste rock while losing only 1-2% of the gold.
This allows for a lower cut-off grades thus increasing overall ounces in the ground.
The 50% that is rejected, does not have to be hauled to the mill, nor run through the mill saving considerable costs, and allowing for either smaller processing equipment or doubling the capacity of the mill.
In Gowests case, the potential exists to more than double the gold content in the crushed rock sent to the processing facilities from 6 g/t to 12-15 g/t.
Gowests 2012 PEA concluded, that WITHOUT ore sorting, 95,000oz could be processed with a 1500tpd operation using contract processing, costing $60 million CAPEX and netting an IRR of 55% with $1200 gold. In todays market, it doesn't get better than that.
With ore sorting, they could potentially double the ounces with the same 1500tpd mill.
I'm understanting, negotiations with XStrata and AC are alive and well. If Gowest closes this private placement, that cash will take them through permitting and get them the updated PEA. At which point, they will finalize the contracts. I expect, that when GWA has completed the hard work, and the updated PEA reconfirms the IRR, Xstrata will jump in head first.
Now how did this turn into a GWA post? ;)
