In Q2 2022, Buckreef Gold successfully completed the final ramp up of Phase 1 of the 1,000+ tpd processing plant to 360 tpd design, which is now operating at nameplate capacity. Select operating, financial and stockpile information follows below:


Total ore mined in Q2 2022 increased to 47 thousand tonnes (“kt”) from 28 kt in Q1 2022 and the strip ratio in Q2 2022 was 2.3 (ore:waste tonnes). During Q2 2022 Buckreef continued to build up a significant inventory of mined material. Mining costs per tonne (variable) primarily reflect contractor mining costs following the hiring of FEMA in Q1 2022 on a two-year contract to mine ore, waste and to construct the TSF at Buckreef Gold. Mining costs per tonne (variable) of $3.07 in Q2 2022 were higher as compared to Q1 2022 ($2.84) primarily due to a slight increase in drilling and blasting during the quarter to break quartz vein rich zones for excavation.


The 360 tpd processing plant reached nameplate capacity in Q2 2022 and achieved the following statistics: (i) average throughput of 286 tpd; (ii) plant availability of 92%; and (iii) average recovery rate of 90% with consistent tailings grade, regardless of head grade. In February 2022 a high-pressure elution column was commissioned improving elution efficiency and facilitating record production in the month. In addition, the second tailings storage facility (TSF) for processed oxide material was completed. The new facility, with planned future ‘lifts’ provides two years of storage. Processing costs per tonne (variable) of $15.59 in Q2 2022 reflected a decrease relative to Q1 2022 ($17.56) as Q1 reflected the ‘first fill’ feeding of lower grade ore, chemicals, fuel and reagents into the expanded 360 tpd processing plant, downtime associated with switching the plant from the test plant period to the 360 tpd processing plant and impact of the ramp up over the commissioning period.

Stockpile, Gold in Circuit (GIC) and Finished Goods Inventory

At the end of February 2022, the Company sampled and surveyed the stockpiles at Buckreef Gold and reported the following statistics: (i) the ROMPAD contained 64,020 tonnes at 1.89 g/t with an estimated 3,886 ounces of gold; and (ii) crushed mill feed of 5,334 tonnes at 3.42 g/t containing an estimated 587 ounces of gold. As at February 28, 2022, Buckreef Gold also had 564 ounces of gold in circuit, reflecting a buildup of metal inventory in the CIL tanks which will be processed in Q3 2022. The significant stockpile and GIC balance at Q2 2022 provide support for the Company to meet its production guidance in the upcoming quarters. In addition to stockpile and GIC inventory, Buckreef Gold also had finished goods inventory related to the production of 256 ounces at the end of Q2 2022 that will be sold in Q3 2022.