MMN macmin silver ltd

quarterly report sep. 2008

  1. 247 Posts.





    [url]http://stocknessmonster.com/news-history?S=MMN&E=ASX[/url]




    Here some parts out of the Report, for my opinion..........

    ----I STAY LONG--------







    [i]Mining


    Silver leaching and powder production decreased slightly with approximately 109,000oz of silver contained in powder produced during the quarter. Lower production was due to the
    initial stacking of the second leach pad, which resulted in disruption to irrigation of the ore and subsequent lower grade feed solution to the extraction plants.


    Commissioning of the first module of Merrill Crowe silver extraction plant continued, producing quantities of silver bearing product for optimisation and marketing purposes.

    Supply and assembly work on the components for the upgrade to the crushing circuit was undertaken and as at the date of this report mechanical assembly of the crushing upgrade is complete, commissioning has commenced but we are now awaiting final electrical certification to enable integration with the original crushing circuit.[/i]


    [i][b]Twin Hills (ML 50161) - Development and Production Activities Summary[/b][/i]


    [i]Silver leaching and powder production decreased 5% and 17% respectively with approximately 109,000oz of silver contained in powder produced during the quarter.
    136,000oz of silver was sold during the quarter compared to 73,000 oz in the previous quarter. Reduced production was due to the initial stacking of the second leach pad, which
    resulted in disruption to irrigation of the ore and subsequent lower grade feed solution to the extraction plants.[/i]


    [i]Commissioning of the first module of Merrill Crowe silver extraction plant continued, producing small quantities of silver bearing product for optimization and marketing purposes.
    The introduction of this additional extraction process has now been shown to successfully strip silver from the solutions down to almost zero. Commercial production, subject to
    suitable refining tests is now being accelerated and additional filtering capacity for the Merrill Crowe system as well as a second module is being considered.[/i]


    [i]Engineering and electrical contractors began assembly and connection work on the components for the upgrade to the crushing circuit during the quarter and as at the date of
    this report mechanical assembly of the crushing upgrade is complete, commissioning has commenced but we are now awaiting final electrical certification to enable integration with the
    original crushing circuit.[/i]

    [i]Recruitment of staff to allow for additional shifts on the crushing operation has commenced so that the upgraded circuit, once commissioned, can be operated longer hours to maximize
    production.[/i]



    [i]Company Shares Market Value
    30 Sept 2008
    New Guinea Gold Corporation (TSX) [url]www.newguineagold.ca[/url] 10,847,020 $2.9M
    Malachite Resources NL [url]www.malachite.com.au[/url] 1,500,000 $0.2M
    Frontier Resources Ltd [url]www.frontierresources.com.au[/url] 5,425,000 $0.2M[/i]




    [i]Mt Gunyan Prospect

    As a result of our current need to focus our drill crews on grade control and other mine related operations the planned work to update the resource calculation for the ‘shallow’ section (i.e. down a depth of between 50 and 75m below the ground surface) of the Mt Gunyan prospect have been rescheduled to a later date.

    [green][b]Original plans where to have this work completed by the end of the current quarter. All drilling and assay data to allow this update to be undertaken, and results previously released to the ASX indicate that the northern section of the prospect may contain a larger volume of higher grade material than previously outlined.[/b][/green][/i]





    [i][b]Note:[/b][/i]

    [i]• US$ to AUD$ exchange rates will vary and thus cause the US$/oz site production cost to change. The AUD$/oz site production cash cost will not vary significantly with exchange rate fluctuations.[/i]



    [i]• The above projections are based on both the Crushing Circuit upgrade study and increased shifts, and could vary depending on the crushing upgrade performance.[/i]

    [i]• It is important to note that there is a minimum three month time lag between the time of stacking ore on the heaps, allowing leaching to commence, and the sale of the silver bullion produced from that ore. For this reason a positive net cash flow will not be achieved until the second quarter of 2009.[/i]


    [i]• Approximately $AUD1.2 million in additional capital is required to expand the Merrill Crowe silver recovery facility and purchase a standby jaw crusher.[/i]



    [i]• To remain viable and achieve the above production levels and costs, the Company will need to raise a minimum of AUD$5 million, including the capital above, by sale of assets and by an equity raising.[/i]




    [i][u]In response to queries from shareholders[/u], the Company is investigating the possibility of marketing its own
    silver bullion. There is a long lead time required, however, so this could not be achieved until early 2009.[/i]

 
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