NewswireToday - /newswire/ - Chiyoda-ku, Tokyo, Japan, 2013/06/11 - The ground-breaking of various mill circuits began in December 2012 and was on-going through May 2013. During February and early March the Company ran low grade mill feed through the mill circuits and confirmed that all circuits were functioning.

The latest price declines of gold and silver resulted in mining stocks tumbling heavily, whereas some stocks notably bottomed and started healthy rebounds most recently. Among our favorite contributors for short- and long-term recoveries is MTR Global which announced the start of commercial production of its 100% owned Royal Sun Mine along the rugged Karakoram Mountains.

“The ground-breaking of various mill circuits began in December 2012 and was on-going through May 2013. During February and early March the Company ran low grade mill feed through the mill circuits and confirmed that all circuits were functioning to specification. The initial mill feed used for commissioning was extracted from veins exposed on surface at the Royal Sun Mine. In the last half of May the Company began milling ore and making final adjustments to the mill circuits with the result that effective June 1, 2013 the Royal Sun Mine is in commercial production. In addition, MTR Global has negotiated the purchase of approximately 10,000 tons of silver ore from a nearby private mining operation to ensure boisterous mill operation.”

The cost of mine construction was roughly 11 million which fell well below the budgeted 15 million executives expected to dish out. Management achieved the momentous mark of becoming a producer in only 9 months. For 2013, a production of around 850,000 ounces silver equivalent is expected, whereas an output of more than 1.5 million ounces silver equivalent is planned for 2014.

The PEA (“Preliminary Economic Assessment” study) will be published 4th quarter 2013 in order for production to commence in late 2014. We expect a yearly production of around 3 million ounces silver equivalent starting from 2015. This year, an aggressive drilling program totalling 25,000 m is planned hence, a relatively strong news flow is on the horizon with the likelihood of positively affecting the stock price.

Written by / Agency / Source: MTR Global

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