Exploration and evaluation
-- Capital development continued with the 1807 zone ramp being driven down gradient to the 481 and 485 levels. In Q4'13 the Company intends to complete a program of in-fill drilling moving inferred 1807 zone material into the measure and indicated categories with the medium term intention in fiscal 2014 of testing for new mineralization down plunge. All zones within the mine, including the 1807 Zone, remain open both up and down plunge.-- The Group finalized a purchase and sale agreement with a local exploration company for the exclusive rights to explore and develop the Krissy's Buckle gold/copper property located within 40 kilometres of the Group's Nugget Pond precious and base metal processing facility. The Group has exclusive rights to explore and develop the property while providing the vendors with a 2% net smelter royalty ('NSR') on any ore extracted. In addition to the NSR, advance royalty payments totalling $90,000 will be paid to the vendors over the first 4 years.
-- At the end of the third quarter a total of 136 full time employees were employed at the Ming Mine compared to 143 full time employees at 31 January 2013. Winter operations are more labour intensive and with the cold season now behind us further reductions in the labour force may be possible. The Group continues to evaluate current employment levels and look for opportunities to streamline its operations with the goal of improving overall efficiency.
-- A total of 4,667 wmt of concentrate was provisionally invoiced during the period at an average price of $3.43 per pound copper, $1,580 per ounce gold and $28.31 per ounce silver, generating $10.0 million in revenue before final assay and weights were agreed on concentrates shipped in February 2013. An additional $174,000 in revenue was realized on the sale of 117 ounces of gold produced from the testing of floatation tails from the copper concentrator being reprocessed through the Group's gold processing facility.-- Revenue associated with the sale of copper concentrate is recognised when significant risks and rewards of ownership of the asset sold are transferred to the Group's off-taker, which is when the group receives provisional payment for each lot of concentrate invoiced. Where a provisional invoice is not raised, risks and rewards of ownership transfer when the concentrate passes over the rail of the shipping vessel. Adjustments arising due to differences in assays, from the time of provisional invoicing to the time of final settlement, are adjusted to revenue. Adjustments arising due to differences in commodity prices, from the time of provisional invoicing to the time of final settlement, are adjusted to Gain or loss on Derivative Financial Instruments.-- During the quarter the Group agreed final weights and assays on the second concentrate shipment with its off-take partner resulting in a $101,442 reduction in revenue bringing net revenue for the period to $10.1 million. Following the shipment of concentrate in February 2013, commodity prices began to fall. To reduce further losses the Group fixed a portion of its copper, gold and silver content resulting in a realized loss on derivative financial assets of $385,386 being the difference in the commodity prices at time of provisional invoicing, and actual commodity prices realized on the fixed portion of the shipment. The following summarizes provisional commodity prices versus actual commodity prices realized on price fixing: