Endomines (STO: ENDO) plummeted a whole 20% after publishing its Pampalo Q2/2011 production statistics and progress report. In the report Endomines says that they have now reached scheduled operating capacity for Pampalo gold mine in Ilomantsi, Finland.
Actual gold production for Q2 is below target as a result of lower than expected gold grades from the stopes in production. The company says this is because of they have started production from low-grade stopes and that there has been excess waste rock dilution in the high grade stopes.
There will also be a downtime of around 10 days on the site as there will be a scheduled power line repair in August. With these issues adding up, Endomines cut its production guidance from 700 kilograms of gold in 2011 to 550-600 kilograms.
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