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QIS Update #7 2015 - May 21st 2015

Included in this update:

  • Newlox Gold Ventures provides an operational update



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Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.05 (coverage commenced March 31/14 - $0.05)


Newlox Gold Ventures Corp. has updated its investors on its progress in commissioning its tailings remediation program.


Newlox’s operations team, with the help of its advisors at the University of British Columbia (UBC), have been working to optimize the Company’s first tailings reclamation and precious metals recovery project, as well as a newly commissioned beneficiation facility.

Management is pleased to report that the Company has progressed both projects and that the operations team has proven to be resourceful in addressing the challenges which are inherent to the development and commissioning of these types of facilities. Furthermore, the team has been able to effectively deploy limited capital; building both the concentrate and beneficiation facilities with the modest budget originally envisioned for a single project.

At the concentrate plant, the Company’s goal is to increase throughput capacity from the pilot plant level of 20 tonnes per day to a level of between 60 and 80 tonnes of tailings per day. Equipment installation and construction is now complete and final optimization work is underway. The Company has enlisted the help of two expert consultants to complete the flotation optimization process, which represents the final significant hurdle before the plant enters steady state operation.

Testing began at the beneficiation facility in March 2015 and the first recovery of precious metals and contaminants was reported on March 9, 2015. Although encouraging, recoveries were not as high as expected and a systematic program of troubleshooting was initiated to address this problem. With the help of the UBC engineering experts, Newlox has determined that mercury contamination in the historical tailings is higher than expected, resulting in excess mercury in the reclamation circuit, causing interference with precious metals recovery.

While higher than expected mercury contamination does pose an operational challenge, the contamination encountered further highlights the need for the Company’s reclamation effort. Operationally, Newlox has taken steps to resolve this issue.

Having addressed a number of commissioning challenges, the Company is pleased to report that modest doré production and mercury recovery is now underway. The Company has a comprehensive plan to incrementally increase doré output week-over-week toward its stated objectives.

QIS Capital: The latest news release was very conservatively written to address operational challenges (which are always there in start-up operations) as well as the delay in getting off the ground (which is pretty common for start-ups as well). One thing that was mentioned was the fact that management was able to double throughput capacity and build an entirely new beneficiation facility with a very modest financing which was really meant to only fund one of those projects. Congratulations to management for their prudent use of capital at a time of very limited capital in the industry.

Actual operations, while a few months behind, are proceeding very well and are progressing toward commercial run rates. The mercury recovery actually proves the company's business model which is why Newlox gets the tailings for little or no cost and why the government is excited to have a company like Newlox operating in their country. While the higher than expected mercury content set them back a few weeks, they have successful overcome this problem and are moving forward. The company is now generating revenues and should be providing progress reports on a more consistent basis.


Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 2,462,000 shares, 2,000,000 warrants, and a $60,000 convertible debenture of Newlox Gold Ventures Corp. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2015 QIS Capital Corporation.

Canadian Small Caps

Canadian Small Caps

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