Dear Clients
I am very pleased to report that today, our long awaited CIP processing plant started.
Commissioning of the various components within the new plant have finally begun.
Our Tailings Storage Facility (TSF) is now complete, and our CIP processing plant support buildings
are completed with installation of components like laboratory equipment nearing completion as well. And our
Gold Hill Mine development continues.
As this final testing, commissioning and fine tuning is occurring, gold ore will soon be processing daily in our new plant.
We continue to have delays in completing the construction and connection to the national power grid. However, to overcome this issue, we have completed installation of our backup electrical generating power
plant. This electrical generating station was to be used in a backup capacity to the power provided by the
national power grid system to ensure 24 hour 7 day a week electrical power to our operations. This will now
be our primary power source until we are finally connected to the national power grid.
Our 4km electrical powerline was expected to be completed in early September but delays halted
work on this phase which was to enable us to be more environmentally friendly by being a part of the
national power grid. Work continues and when completed, this will become our primary source of power.
We had had many serious challenges both in the ground preparation from extreme weather
conditions that lasting much longer than usual as well as the parts supply problems from South Africa due to
COVID lockdowns.
The TSF is very large, with its main area being 2 football fields wide and 3 football fields long, it is
lined and connected to a series of settling ponds. The Phase 1 size is 100m by 100m. The TSF is where all
of the treated tailings from the gold ore is stored. Eventually the TSF becomes a very large hill, shaped then
reclaimed and covered with organics and planted with trees and grasses. The TSF and its drainage system
is very environmentally sensitive and great care was taken in its construction. Without our TSF and its
drainage system being properly built, we could not have got final operation approvals, so great care and
attention was required. And without the TSF being properly completed, our CIP plant could not run, not even
for testing. So many unavoidable COVID delays with South African manufacturing plants closed then border
crossing challenges but thankfully that is behind us.
Our mining access road to the top of Gold Hill is nearly completed making a safe all weather ore
hauling road to bring our valuable gold ore from the top of the mountain to our crushers and ball mills.
Our large medical clinic construction at our local village 3 km from our Camp that will be providing
primary care to the community continues. I look forward to being present for its opening and dedication.
Gold Hill capacities with our equipment on site has greatly increased. Our CIP plant opens at 300
tons per day and increases in stages to 800 tons per day processing, then we plan increase to 1,500 then
3,000 tons per day processing targeting later this year. We currently have stockpiled over 100,000 tons of
ore for immediate feed to our processing plant.
After so many setbacks, our plant starting today is a giant milestone! These developments and
progress help ensure we meet our goal of rapid increases in our production and of making gold deliveries to
our clients. We will soon make a detailed forecast of potential gold deliveries for this year . The principle is
that we complete all obligations and deliveries and fully honor our Forward Gold Sales commitments in the
fastest time possible. But we have to keep in mind that we have to fulfill the local tax and country royalty
requirements effecting the free cash flow. I continue to ask you for patience and that our gold production is
close.
And on a personal note, as travel restrictions ease, I look forward to being back in our mine Camp.
Wishing you all the best in good health in this New Year and hoping you are all safe during these
global troubling times.
For further information please contact me directly at:
rob@rubycreekgold.com
Regards
Rob Slavik, CEO
Ruby Creek Resources
