Vatukoula Gold Share Discussion Threads

[janyboy11] 07/6/2013 16:56

atlantic57 7 Jun'13 - 08:59 - 663 of 665

This strongly suggests that the Management do not understand the geology of the mine.


WHO SAID MANAGEMENT MAKE THEIR MONEY FROM DIGGING FOR GOLD

[atlantic57] 07/6/2013 15:31

Rogue trader i would welcome someone with Competence to make either the bull case or the bear case!

Sadly it looks like investor interest in vgm is close to zero!

[roguetreader] 07/6/2013 13:36

Andy,
I for one always appreciated Wendy's posts, even if they were on occasion a little cutting to the less well informed. She had an in depth knowledge which was extremely well researched, and well presented. If the Bearish arguments posted on many of these boards were half as well researched and presented as Wendy's bullish assessments were then boards would be truly worth reading. Sadly they are not.

[andy] 07/6/2013 09:56

janyboy,

Wendy is no idiot, she's a well educated lady actually!

She's also as vulnerable to mistakes as the rest of us, and makes bad calls on companies.

My portfolio has a few bad calls, doesn't yours?

You may not agree with her, but at least disagree in a respectful manner.

[chinese investor] 07/6/2013 09:10

Clear as Mudd !

Significant milestones have been achieved in our development program, with both development at the Philip shaft on 20 level ("L") providing access to the Cayzer-Prince and Prince William ore bodies and development in the Smith shaft on several levels providing access to the Matanagata East ore body.

A detailed review of operations was undertaken last year and identified a capital investment program to bring the mine to its sustainable production target.

The program identified four priority mining areas that required additional underground development and access: Cayzer Prince, Prince William, and two areas of the Matanagata ore bodies.

In addition to the review underground drilling has indicated that the 1500 Split ore body which is located in the hanging wall of the Prince William ore body at Philip Shaft has good mining potential below the current areas being mined.

Capital Development in the Philip Shaft area (Cayzer Prince, Prince William and 1500 Split Ore bodies) has centred on the development of two declines.

The first decline has now been completed down to 20L and has broken into the Philip Shaft on 20L.

The previous lowest mining horizon at Philip Shaft was 18L. The shaft below the 18L is full of spillage and the holing of the decline into the shaft on 20L is now allowing the shaft to be cleaned out.

Once this is completed the shaft will be re equipped down to 20L allowing for easier personnel access to 20L and re equipping of the 18L shaft ore passes for hoisting of ore and waste.

This decline also provides access to the Prince William and 1500 Split ore bodies as well as access to the Western extremity of the Cayzer Prince ore body.

Level development has already commenced on these access drives and development at the end of February was within 100m of commencing ore development on the Prince William ore body on 19L with the 1500 Split ore body being accessed only another 40m further on from that point.

The second decline allows central access to the Cayzer Prince ore body below the existing 18L.

This decline has already turned out onto ore and limited stoping has commenced.

This decline will continue with main footwall drive development and further ore access being only about 150m away.

Further drilling results have allowed for development plans to also be drawn up for additional access to the Prince William ore body (and identified high grade footwall structures) on 18L, 17L, 16L and 14L and the Prince William and 1500 split ore bodies to the north of the shaft on 16L, 15L and 13L.

Capital development at Smith Shaft on the Matanagata ore body has progressed well with the incline and associated footwall drives having already opened up blocks for mining on the 15L.

All the above declines and inclines at Smith and Philip will continue in order to access additional ore areas both deeper in the mine (Philip) and up dip (Smith).

Dewatering of the Smith Shaft lower levels (which have been flooded for many years) has continued. Dewatering commenced at the 19 L and is now dewatered to the 21L.

The lowest areas of the Smith Shaft are on 23L Underground Production and Development.

Gold production from underground mining was limited during the undertaking and implementation of the capital investment program.

We continue to gradually implement footwall drive development (below the ore body) as we believe that this approach will deliver great benefits and allows for a reduced mining machinery fleet and increased extraction ratio in the longer term (now already starting to be realised at Smith Shaft).

In the short-term however, it will slow initial access to the ore and not produce any gold from development. However we remain convinced that this program is required for the long term sustainability at Vatukoula.

During the first half of the year we mined a total of 206,501 tonnes of ore and waste, a 15% decline on 242,769 tonnes mined in the same period last year.

The decline was driven by reduced production from stoping areas while we were developing new areas.

Ore delivered from underground was 126,063 tonnes at a grade of 4.86 grams gold per tonne.

This was lower than the previous half years 165,339 tonnes at a grade of 5.68 grams per tonne, a decline of 24% in tonnage and a 14.5% in the grade.

The lower tonnage was a reflection of lower strike drive development, reduced stoping tonnes due to reduced face availability while developing to new areas and improved stope mining widths.

The year on year variance in grade is a result of lower grade being delivered from the Smith shaft.

The lower grade from this shaft is a result of local structural controls on an area of the Matanagata deposit.

Total development decreased to 10,052 metres, a 24% reduction compared to the same period last year.

The variances in each development type are detailed below.

-- Operating development includes all mining to access stopes within an ore body (e.g. rises, cross-cuts and gullies).

This type of development is expensed as it is normally within the ore body and once the mining has ceased the development has no further use.

Operating development decreased by 21% to 6,779 metres compared to the same period last year. This reduction is a result of increased resources being assigned to the capital development programme.

Once new development has exposed new mining areas, we expect an increase in operating development.

-- Strike drive development is a unique category.

Strike drives are long-term (more than one year) horizontal access drives along the strike of the ore body and provide access to the operating development and stope mining.

As these contain the mineralisation within the drives, they are fully expensed.

Strike drives are dilutive and while we continue the current development programme they will lower the overall sulphide head grade.

The goal of the development programme is to provide access to sufficient ore bodies to allow the mine to produce at our planned rate.

We were expecting completion of this phase of development by end of 2013, however our schedule has been delayed as a result of capital constraints.

We anticipate restarting the development program as a major part of the capital investment program with the strike drive development becoming a minor part of overall mining at Vatukoula and therefore having only a minor impact on overall sulphide head grades.

Strike drive development decreased dramatically this half year to 882 metres (2,632 metres: HY 2012) as a result of our reduction in non-essential development along with our cash preservation programme.

-- Capital development metres are primarily comprised of inclines, declines and footwall drives.

This type of development is carried out in waste and provides long term access to the ore bodies, and is capitalised.

Capital development increased by 21% to 2,391 metres compared to the same period last year.

This is the result of incline and decline access development (inclusive of the 18 level Philip Shaft decline development).

Capital Development is a major item of our new regime in underground mining at Vatukoula.

These capital development projects are being carried out by three mechanised development machines ("Jumbos").

Capital Projects

As part of Vatukoula's strategy to expand, sustain and optimise the mining operations in Fiji we have identified several projects that exceed the sustaining capital investment normally required at a mine of this nature.

These projects form the majority of capital investment program. Some projects were started in anticipation of a debt financing, including essential; long term development.

However In December we severely curtailed the capital program to reduce expenditure to 'necessary expenditure' only whilst awaiting the necessary finance.

This included the suspension of all surface resource development drilling, and the underground development of some areas of the mine.

Although this has constrained production, the mine personnel have managed to maintain operations until we can secure the capital.

The major capital projects that are either under progress as essential items, or on hold pending finance, and their progress and anticipated completion dates, are outlined below.

and on and on

[augustusgloop] 07/6/2013 09:00

Gekks,

look at all the shareholders money that has been poured into the mine in the last 4 years - not a single penny returned.
Look at the need for another $40m to be spent - on the promise that this time its different.

Clearly the mine was not viable even during the massive POG hike of the last 4 years.

[atlantic57] 07/6/2013 08:59

Regardless of what the price of gold was when it closed Paxton has not delivered on a single production forecast.

This strongly suggests that the Management do not understand the geology of the mine.


They persuaded mug punters and various institutions that they new what they were doing but it is clear they do not.

[gekks] 07/6/2013 08:43

Perhaps the mine wasn't viable in 2006 - but gold then was around $600

[chinese investor] 07/6/2013 07:50

Did anybody else see Panorama last night ?
Fiji is not a nice place !

www.overzeal.co.uk

[janyboy11] 07/6/2013 07:47

NOTHING HAS CHANGED - VGM WAS NEVER GOING TO WORK




p@ 18 Jan'09 - 09:18 - 2 of 503

FIJI TIMES

"The mine which has been operating for over 75 years, Mr Gordon said has all but exhausted the gold ore resources that could be profitably mined."

Simon When the old owner says this you really have to keep an open mind.

Fiji gold mine closes, 1700 jobless
Wednesday, December 06, 2006

More than 1700 people are jobless after the Emperor Mines Limited ceased operations of Vatukoula Gold Mine yesterday.

Emperor's chief executive Brad Gordon said this decision was made after the completion of an extensive three month review of the Vatukoula Mine which determined that the mine was not economically viable.

He said the closure of the Vatukoula Gold Mine is not a result of the political situation in the country at the moment.

"The mine will now move into a care and maintenance mode over the coming two weeks, and most work areas will no longer operate from today. Some essential functions will continue, so that finance and human resources services can continue. Workers are being advised not to attend work, and are being stood down on notice," said Mr Gordon who is in the country to make the announcement.

Mr Gordon said the only activity that would occur over the next four weeks is a decommissioning of the mill as the mill gets the final gold out of the circuit.

Mr Gordon the mine was losing as much as $3 million to $5 million every single month including important capital expenses which were needed to keep the mine open and safe.

The mine which has been operating for over 75 years, Mr Gordon said has all but exhausted the gold ore resources that could be profitably mined.

He said the recent review produced results showed that the remaining gold ore could not be mined profitably as the company would lose over F$80 million trying to recover what has been identified as possible gold ore.

Emperor Mines Ltd and the entities it controlled during the year ended June 30, 2006 made a loss of $27,217,000 after tax Emperor owns interests in three gold mines: 20 per cent of the Porgera Joint Venture one of the worlds largest gold mines, 100 per cent of the Vatukoula gold mine in Fiji and 100 per cent of the Tolukuma gold mine in PNG.

[janyboy11] 07/6/2013 07:31

goatherd 6 Jun'13 - 19:17 - 33474 of 33484

I have had a very long talk with Wendy.

She is very well, but very disillusioned with AIM in general, and perhaps mining in particular. She says she will not post while she is in this mood - but if it changes then she will. Don't hold your breath!

She is no longer paid by Proactive; and her own investments are partly why she is in her current mood.


HA I ALWAYS SAD SHE WAS AN IDIOT - PLUS SHE IS A MOUTHPIECE OR D LENIGAS

[janyboy11] 07/6/2013 07:30

goatherd 6 Jun'13 - 19:17 - 33474 of 33484

I have had a very long talk with Wendy.

She is very well, but very disillusioned with AIM in general, and perhaps mining in particular. She says she will not post while she is in this mood - but if it changes then she will. Don't hold your breath!

She is no longer paid by Proactive; and her own investments are partly why she is in her current mood.


HA I ALWAYS SAD SHE WAS AN IDIOT - PLUS SHE IS A MOUTHPIECE OR D LENIGAS

[johncraven] 06/6/2013 11:48

Gold rising again!!! Better volume!!!!....but you guessed it somehow has to fall.

[skullymeister] 05/6/2013 15:25

The isdx is only showing 56k volume. Anyway with today's market vgm is my best performer!!

[johncraven] 05/6/2013 15:13

skully look on the isdx echange aswell. Not all trades get shown on the lse

[skullymeister] 05/6/2013 15:11

John. 60000 shares can hardly be considered as plenty of buying. But saying that its up which is always a good thing

[johncraven] 05/6/2013 13:32

There has been plenty of buying today skully I would suggest, with the price of gold rising again.

[chinese investor] 05/6/2013 11:58

I've often wondered why "Chinese Companies" put Millions into a Placing but they don't put Thousands into Buying the Shares.

[skullymeister] 05/6/2013 11:53

Has vgm just gone up 6% on the back of 300 shares? That 30 quid!!! If we all chuck in a tenner we can get this up to 250 in no time ;)

[p@] 05/6/2013 11:22

jany-Yes and no-I bought after Paxton bought 5,000,000 @1p for 1p.

Sold for about 1.9p equivalent.

Bought back in @.0.9p oldmoney

sold @.37p

Just bought a few @ 9.9p new money....LOL

[chinese investor] 05/6/2013 11:16

Update Mid June !

[fangorn2] 04/6/2013 22:38

As little said about Plus the better - isn't that where Weetabix is listed?and has been so for decades?