i am bullish on sbm because..., page-10

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Surface Development
The development of the 820 metre deep, 5.5 metre diameter Main Ventilation Shaft began in the June 2007 quarter and was completed during the March 2008 quarter.

Other surface infrastructure needed for the mine includes a refrigeration plant for cooling underground air temperatures to levels suitable for a healthy environment, and a paste fill plant. Supporting the whole operation requires a new gas- fired power generation facility and a substantial upgrade to the accommodation facilities at Leonora. Refurbishment of the Gwalia treatment plant has commenced and, when completed, the plant will have a capacity of approximately 1.2 million tonnes per year of hard rock and up to 1.8 million tonnes per year, when softer open pit material is blended.

St Barbara spent A$38 million on Gwalia’s development during the 2007 financial year and will spend another A$110 million during the 2008 financial year. Life of mine cash costs for the project are forecast at A$405 per ounce. This will place the Gwalia mine in the bottom half of the cost curve for Australian producers.