Peninsular Gold Share Discussion Threads

[jonny flame] 29/11/2010 09:28

Final Results out this morning;



Not long to wait then;

-- Expansion of the Raub plant's capacity to 2.0mtpa underway

-- Expanded plant to be commissioned on tailings at end of Q1 2011 and oxide ore to be included during H2 2011

[biggest bill] 24/11/2010 16:00

Horndean Eagle, what was the name of the company which disappeared?

[luckyjonah] 24/11/2010 14:42

Horndean Eagle - you should check the history of the company. Andrew Kam is a local judge and bigwig, very well respected in the community (and Raub is very much a community mine). He has previously supported PGL through personal loans to minimise dilution so any placings now will be for good reason IMO and will be diluting his own holdings.

They have previously said they are trying to accelerate the increase in production given the high price of gold and the fact they have the 5 year Pioneer Status during which they pay only 3.8% tax.

[uncle john] 24/11/2010 14:42

We have drilling as BiggestB says, and don't we have to buy some kit for the carbon-leach process to increase the throughput of the plant. I bought in this morning for the chance a rise after the increase of production the expansion of both reserves and resources.
I haven't caught up with everything yet but I am confident on what I do know.

[biggest bill] 24/11/2010 12:18

Diamond drilling is expensive. With two diamond drilling rigs operating simultaneously at Raub, the company must feel reasonably confident that there is a lot of additional gold to be found there.

[biggest bill] 24/11/2010 11:50

The optimists will say there is strong institutional demand for the shares. The pessimists will say that their shares are being diluted. I still like the company; I've picked up a few more shares.

[robhammers] 23/11/2010 08:05

told u another placing. Wont be the last either

[simonparker5] 23/11/2010 07:57

After this mornings RNS we now know why this hasn't moved north like so many other gold stocks.

[biggest bill] 19/11/2010 15:26

It looks likely that they have over-estimated the expected recovery rate. For example, Anglo Asian Mining only manage 70%.

[luckyjonah] 19/11/2010 14:37

I've looked back through the admission doc which indicates expected recoveries of "between 85% and 93%" for the tailings and "80-90%" for the Eastern Lode. 75% is quite a bit short of those figures, I don't remember them quoting that figure before?

By the way they have re-vamped their website too, very swish!

[luckyjonah] 18/11/2010 08:31

I had forgotten that too, I think I should go to the bottom of the class! :-) Will try to check on recovery figures but not at work so might not find it today.

[biggest bill] 17/11/2010 16:46

I have looked it up. An ordinary ounce = 28.35g. However, gold is measured in troy ounces which is 31g/ounce.

[biggest bill] 17/11/2010 16:37

Lucky Jonah, my calculations are based on 31g = 1 ounce of gold. I see that your calculations are based on 28.3g = 1 ounce. I think that 31g is the correct figure; it would be nice if your figure was right because it would mean more gold.

[luckyjonah] 17/11/2010 16:23

Yep, I had missed the 75% recovery - I had in my mind recovery was supposed to be 93%, where did I get that from? I'll have to look through my notes again as I thought it was higher than that - ie. 90,000 tpm @ 0.73 g/t = 788,400 g/pa = 27,809 oz/pa @ 93% = 25,862 which is in line with their quoted 25,000 ozs/pa. If it was expected to be 75% they would never have hit 25,000 ozs would they?

[biggest bill] 17/11/2010 15:58

I actually liked the update. The company previously said that they have been processing lower grade tailings over the last few months because poor weather has restricted access to the higher grade tailings. Hopefully, the average grade of the tailings they are processing should increase over the next few months.

I have added a few more shares.

[biggest bill] 17/11/2010 15:24

Lucky Jonah, I have calculated that the average grade of the tailings over the last 4 months is 0.63g/tonne. Perhaps you have forgotten about the 75% recovery rate?

[biggest bill] 17/11/2010 15:14

The update says that the higher grade oxides are going to be used in the second half of next year, presumably in combination with the tailings. The upgraded plant should manage to process 160,000 tonnes a month. Assuming that the combined ore has an average grade of 1g/tonne with a recovery rate of 75% gives a monthly gold production of 3900 ounces. This equates to an annual production of 47,000 ounces of gold in 2011/12.

[horndean eagle] 17/11/2010 15:03

Gold price rise cancels out the grade issues for the time being. Grade will have to pick up soon or else those JORC numbers will have to be re-assessed.

[luckyjonah] 17/11/2010 14:56

Well it might be positive overall but I'm not too chuffed with those gold figures - I make that about 0.43g/t over the last 4 months, that is far below the 0.73 g/t on the JORC figures. That explains the placing, we're about 4,000 ozs short on expected levels for the last 4 months which is $5.2m "loss" as opex costs will be fixed :-(

I would expect selling on the back of this.

[jonny flame] 17/11/2010 14:49

At 52p th company has a market cap of 40.2m GBP

[jonny flame] 17/11/2010 14:46

Production and Exploration Update, Malaysia
Peninsular Gold Limited today announces an operations update from its gold
production and exploration projects in Malaysia. All of the Peninsular projects
sit within 25km of each other in central Malaysia with the Raub plant producing
approximately 26,190 oz since commissioning in February 2009. Following the
GBP5.6m fundraising in October of this year the Company is aggressively pursuing
an expansion strategy of its existing production and resource base delineated to
internationally recognised standards.
Highlights
Production
� Raub gold plant reaches record throughput of approximately 113,580 tonnes
in October
� Approximately 5,840 ounces produced from 384,504 tonnes during the four
months to the end of October
� Recoveries maintained over 75% despite mining of lower grade areas
� All gold produced by Peninsular is sold un-hedged at market price
Production Expansion from 1.1mtpa to 2.0mtpa
� Plant expansion construction at Raub on target for commissioning at the end
of Q1 2011.
- piling of the leach circuit nearing completion
- majority of key contracts for fabrication, construction and long lead
items all awarded
� Mining of oxide material at Raub on target to commence in H2 2011
Exploration
� At Raub 2 diamond drill rigs have commenced drilling below the oxide zones
� Exploration in Northern licence areas commenced:
- Trenching at the Chunchok outcrops (up to 12.3g/t previously sampled)
completed and samples sent for assay
- The first drill rig (RC) expected to arrive at Tersang within two weeks
- Exploration of other nearby targets to commence before the end of calendar
year

Dato' Sri Andrew Kam, Chairman and Chief Executive of the Company commented:
"Our current operations at Raub saw record throughput rates since the start of
the new financial year and I look forward to continuing to expand gold
production at the plant through the ongoing expansion programme. Following our
recent fundraising, we are now aggressively pushing ahead with exploration at
Raub and our Northern licences with the objective of significantly increasing
our overall JORC compliant resource base. I look forward to updating
shareholders with further production and exploration news in the near future as
we seek to realise value from a significant gold region in Malaysia."
Production and Exploration Update
The production expansion operations are on schedule with the Raub plant
currently processing in excess of its design throughput capacity of 90,000 tpm
with a record throughput of 113,580 tonnes in October 2010. Monthly results of
the plant's operation can be seen below:
Raub plant operations report from July 2010

[jonny flame] 17/11/2010 14:44

Yep all looking good, PGL looks well set for some (dare I say it) significant growth.

Should be plenty of news flow over the next few months with the assay results and drilling campaign.

[simonparker5] 17/11/2010 14:34

Nice positive update just released.

[eric76] 15/11/2010 14:49

yes thanks volvo, a very positive piece and it does explain some of the recent buying.
Good to get some history on the mine too.