via Terraserver

It may be entirely coincidental after showing that the transmission line upgrade is complete, after the local news reported incorrectly(or was it misrepresented?) that it would take till the end of 2015, when in fact the line was completed at the end of 2014 and in service the time this photo was taken, Terraserver decides to update sat photos at the Jolu Mill location the very next day.

It appears that the mill was still in operation FULL TILT as of March, 2015

Note that effluent is being deposited at the North End of the above-ground tailings, due to discolouration in the water, and that this portion of the lake is free of ice in cold climactic conditions.

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Terraserver has also updated us on the Jolu Ore Stockpile, which appears to be replenished in full. How the ore was spirited into the crusher without leaving tracks is an open question. All of the roads are empty of snow, meaning there's significant use of the roads for transporting waste rock. (all of the waste rock is being used for construction purposes). All of the equipment noted last August has a layer of snow.

http://bit.ly/1c58e3D

Since there was no construction visible as I had presumed, this prompted me to correct my arithmetic on the first phase of commercial production using Caculator Soup.

This is what I think went on.

Answer:

For the Cash Flow Series
NPV = $230,921.26

The company paid for the first phase of production using 100k oz. The actual production costs were 30% of the gold produced, which mostly went to the subcontractor. Additional costs were incurred during mine building, drilling, road building. They also raised capital prior to commercial production, lowering the per oz cost.

The first 100k oz. was used for this purpose.(Thus the Waterton swap agreement)If you subtract capital raised from the deficit of $172m, then the first 100k oz covers the deficit incurred, perhaps averaging ~$1300/oz+.

That leaves 130k oz. to cover the cost of mill expansion. The deficit will have to be written down by an equal amount, which will probably equal the cost of mill expansion, since absolutely everything else has been covered. $172m divided by 130k. oz. means a gold price average of at least ~$1300/oz. was obtained.

It remains an open question how much production was achieved in fiscal 2015, which ended April 30. My guess is that they were aiming for an additional 77k.

$1400/oz. X ~77k oz = $108m. CAD. SURPRISE!!!!!!!

- F6