RIZAL Resources continues to make slow but steady progress in re-establishing the T’Boli Gold Project in South Cotabato, Mindanao, and ramping up towards the intended Phase 1 daily production rate of 200 tonnes. Progress has been impacted by poor cashflow and a subsequent lack of funds.
|Processing facilities at Rizal Resources’ T’Boli Gold Project.|
The main objective in commissioning the project this year has been de-bottlenecking the plant and commencing production, thus generating cashflow. In the March quarter 18.16 ounces were produced and this increased to just over 346 ounces in the June quarter when the plant processed in excess of 7000 tonnes of low grade mineralised material. Total revenue for the period was C$564,276.
Plant availability for the quarter was 40% due mainly to commissioning during April and a scheduled shutdown for the majority of May to replace ball mill liners and the primary crusher. In June, mechanical issues with the secondary crusher affected plant availability. The bulk of the issues associated with the plant have now been rectified, with availability in late June and July beyond 80%.
During the second quarter, the mining operation delivered 12,257 tonnes of mineralised low-grade material to the mill. This was sourced primarily from low-grade stockpiles, the 545 drive development and a small quantity came from higher grade mineralised stope material. The development and low-grade mineralised material has been the primary source of material being treated during the commissioning phase.
Decline and drive development for the June quarter in the new Minion decline achieved a total driven distance of 594 metres. In quarter three the mining operation was ready to access the 510 level, which is below all previous workings.
Once the T’Boli operation is running at Phase 1 design, planning for Phase 2 development and implementation will begin. Once positive cashflow is sustained the company will commence restructuring of its balance sheet.
Meantime, surface exploration at the company’s Batoto-Tarale gold prospect in East Mindanao remains at minimum levels of expenditure and there has been no expenditure required at the Comval project, which is subject to a commercial arrangement with Metallum Limited.