alarm bells ringing, page-6

Hi All,

Just re-read the production report again from this week.

For me its actually seems reasonable. With burns reef being very narrow, two issues are apparent

1. To resue this reef properly would mean very low tonnage
2. The resuing will be very time and labour intensive

Both these points mean low tonnage, higher grade.

We don't know how much effort went into production in the last two months, but again looking at it logically.

Say we have 4 Air leg crews (guess),

1 at Burns (production)
1 at Donaldsons (development)
1 at Kennys (development)
1 at Tills/stones/maxwells (production)

Only 50% of the mining crews are involved in production and 1 of those are involved in Burns a very low tonnages, high grade time intensive area.

So looking at it this way it is no surprise that tonnage is low in the last 6 weeks or so.

In an optimised mining environment, we want at least 3 of the 4 crews busting decent production rock and 1 in development.

So hence the focus on Kennys and Donaldsons.

Obviously in hindsight we'd all been better off selling 12-15 moths ago in the 30's-40's. But if you're reading this the likelihood is that you did not so we are where we are and have to look at what can happen in a positive manner to increase production and grade. Or you sell and move on.

POG had a huge night last night and I'd expect the gold stocks to move up sharply next week. I don't have the figures but suspect the POG in AUD is looking very good

Cheers