over 100,000 ounces gold production expected. , page-2

There is concern about:
(a) June Qtr-that result could be worse than forecast
(b) That further capital may be required to finance trial UG & new ball mill
(c) That further capital may be required to develop UG from 'trial"
to full UG production
(d) That the opening of the cone crusher from 10mm to 12mm will
put more pressure on the SAG and Ball mills to maintain output
as before.
(e) that throughput grade may drop in Sept Qtr.

It looks like things will be fine, however, once permanent UG is operating
next year.

The ann was abit tentative regarding the transition from trial to permenent
UG mining by it mentioning that it would require board approval later
in the year to progress to permanent UG mining. I would have thought that given the progressively reducing throughput grade that UG would be
virtually a certainty.

It is fine to say that 2013 would be 100K+ ozs without UG but IMO poorer grades and the hedge means lower margins and the POG in a year is not a $1600/oz certainty.

With kind regards
Moorookamick