Testing and calibration of the new circuit was a huge success. We determined the new circuit has a higher capacity than originally thought. The testing did take us longer than anticipated, as we were hoping to have finished within 14 working days and it took us closer to 17. During our testing/calibration phase we were able to run each component of the circuit independently, as well as the entire circuit at only about 20% of capacity for very short time periods. So though we did capture GOLD we were unable to determine the rate of gold per ton we were capturing. However, we can say that everyone involved with the Dun Glen mine was quite impressed with what we did capture for running on such a limited basis and with so many start/stops involving the many moving parts that needed to be fixed, adjusted, aligned, or moved.
We have notified MSHA (Mine Safety & Health Administration) that we are moving from intermittent status into full production as of today, July 23rd. The capacity of running ore with this new circuit could average 100 tons per hour. Using the assay reports from the geological work on the mine, we are targeting 200 ounces of gold recovery per month. The three keys to any gold mine are good ore, enough water and a good circuit to capture the gold. Dun Glen has always had the first two, but lacked the third. Everyone here at URHG is feeling very confident that we now have a GREAT circuit and thus all the necessary ingredients to have a successful mine and in turn a very successful company. We will closely monitor our water supply as we move forward to ensure the ability to run the circuit at full capacity.
Placer mining is best done successfully by consistent hourly production because the gold content of each ton of hour can vary dramatically. The numbers we release from production can be affected by finding a big pocket of ore one week or possibly missing the vein the next week. We plan to have weeks of no less than 40 hours of production time to help us determine what our average output will be, what our cost per ounce to produce will be and what the optimal labor, equipment and support team will look like.
Things look very positive for all URHG shareholders going forward and the confidence at the mine is extremely high. We have GOLD, we have WATER and now we have a beautiful circuit to mine the GOLD from the ore.
Thank you for your patience and continued support as we continue to make progress to our goal of making gold, which ultimately will be reflected in our stock price.