Dear Clients
We continue to hope you are all safe during these global troubling.
Following on our last update, I report that our work progresses but unfortunately not at the speed we
had hoped. We had encountered a delay in completing the construction and connection to the national
power grid. Our TSF is almost completed and our CIP processing plant support buildings are nearing
completion as well. Our Gold Hill Mine development continues.
Our 4km electrical powerline was expected to be completed in early September but delays halted
work on this phase and that is now on track for completion which enables us to be more environmentally
friendly by being a part of the national power grid.
After a much too long wait, our liner for our Tailings Storage Facility (TSF) finally arrived from SouthAfrica in August. We did have serious challenges both in the ground preparation from extreme rains 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 must be taken in its construction. Without our TSF and its
drainage system being properly built, we cannot get final operation approvals, so great care and attention is
required. And without the TSF completed, our CIP plant cannot 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.
Once all is in place, gold will be produced at less than optimal production, but fine tuning will
increase the yields to an optimal outcome which takes about 4 weeks normally. Assuming no further
complications our CIP plant should be fully operational and delivering gold late this year.
Our mining access road to the top of Gold Hill is well underway with much rock work to make 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 elution and refinery building are nearing completion along with our support and administration
and soon the final cleanup will be done. And on a personal note, I do hope that travel restrictions ease soon
so that I can witness and be a part of our ceremonies.
Our large medical clinic construction that will be providing primary care to the community continues.
Gold Hill capacities with our equipment on site has greatly increased. Once our CIP plant starts its
commissioning, we will be increasing in stages to 800 tons per day processing, then to 1,500 then 3,000 tons
per day processing targeting next year. We currently have stockpiled over 100,000 tons of ore for immediate
feed to our processing plant.
As we near production, steps were taken to safeguard the legal status of our mine and clarify any
past claims. In this context, stakeholders have agreed to an arrangement which ensures clear operations.
After so many setbacks we can see the start of production. 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 make a detailed forecast of potential gold deliveries for this year and next 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.
Wishing you all the best in good health,
For further information please contact me directly at:
via email at; rob@rubycreekgold.com
Regards
Rob Slavik, CEO
Ruby Creek Resources
