New Guinea Gold is the next big gold producer

New Gold Producer in Papua New Guinea with approx 1 million ozs in gold equivilant resources, and targets exceeding 5 millions ozs

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Message: a few personal notes on NGG

Thanks for all the replies....I've spent an hour re-reading the info, and as an aside, I can't find any figures for the mined grades & recovery percentages etc. and I'm not sure NGG ever did release production figures specifically for Q1 09.

I've found this email, and put together all the other info (and discussion) I can find, for us all.

The dissenting SH action seems to me like a complete waste of very valuable time. I'm very much in support of this company (not that it matters one way or tother) and that management is persevering....and production figures for Q3 may soon be out...let's hope they show the continued increases of Q2......I'm looking forward to them and hoping for something over 3koz, perhaps over 5koz gold. Something blew up production during Q1 09, which hadn't been a problem in Q4 08....seems to rule out lack of additional pads, and the 'high volume solutions' is a mysterious phrase.

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-----Original Message-----
Sent: Friday, 6 February 2009 1:17 AM
To: info@newguineagold.ca
Subject: NGG activities

Hello..................I’m a small investor in NGG.................I’m interested to know is/has gold production been active at Sinivit during Jan (2009), and that production is proceeding as planned?...........Many thanks AM UK

From: New Guinea Gold [mailto:info@newguineagold.ca]
Sent: Wednesday, March 18, 2009 12:13 AM (blue text format NGG's)

Hi A – sorry this appears to have gone unanswered during Bob’s recent trip to Europe and Canada. We’ll be releasing Q1 production numbers shortly – monthly production continues to vary significantly depending on the grade of the ore, amount of rainfall (affects the leach solution) and the number of pads leaching.......Regards.......Forbes West

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Grade of ore...can't find any info on production grade anywhere. If the number of pads declined and halved production, no info is give anywhere as to why the pad numbers may have fallen (or that some, became inactive?)...I thought they were only ever planned to increase......seems most likely the efficiency of the pads declined heavily from Dec 08.

What also appears as odd to me, is that production did rise to 3,560 oz gold in Oct-Dec 08 soon after start-up using the infrastructure put in place to that point, so the process appears to have been working very well during that period. Shouldn't the existing equipment have gone on to produce something resembling Q4 08 production, as forecast? What changed to halve production? It has also been quite difficult to get the Q1 09 production figures, as I can't find a release dealing with that. NIn most areas, the rainy season runs from December to March.

The nearest info I can find for the subsequent fall to 1,605 ozs in Jan- Mar 09 are from the Mar 24th 09 press release: The Sinivit Mine is moving steadily ahead although various problems, relating to weather and the mine's remote location, continue to be encountered........... Difficulties with high solution volumes in vats....the vats are covered now I think.

This isn't comment isn't that easy for me to understand......did NGG add too much volume, or did the rain do it? NGG then put covers over the vats.

There was also the mention of security problems in the second half of Dec, but I can't find any details of what they were.

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Jul-Sep 08 1,170 ozs gold
Oct-Dec 08 3,560 ozs gold

MD & A forecast late 2008...................actual

4,500 ozs in quarter one, 2009; ..............Q1 09 1,605 gold
7,000 ozs in quarter two, 2009............Apr-Jun 09 2246 ozs gold 8,500 ozs in quarter three, 2009....................
8,500 ozs in quarter four, 2009.
These figures remain achievable provided the process upgrade can be completed as scheduled by end of first quarter 2009.

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NGG press release Tue Mar 24th 2009

The Sinivit Mine is moving steadily ahead although various problems, relating to weather and the mine's remote location, continue to be encountered. As at March 19th a total of 72,500 tonnes in vats containing an estimated 11,000 ozs of leachable gold were on line and being processed (see below for discussion re leaching at Vat 2) In addition, the crushed ore stockpile awaiting placement in vats was a further 26,000 tonnes containing an estimated 4,700 ozs of leachable gold (also see below for explanation). Two further vats are under construction and will be completed over the next four weeks.

Difficulties with high solution volumes in vats and supply chain problems due to remote location, resulted in lower than anticipated gold production in January and February, but March should yield significantly higher output.

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