25 October 2006 September 2006 Quarterly Review Executive Summary • Mine and mill operations performed as forecast during the quarter • Gold shipments were 11,457 oz (including 428 ounces from ore purchases) and 16,115 ounces ytd • Head grade of crushed ore processed was 14.4 g/t • Cash costs were approximately $480/oz • Average gold price received $819/oz • Cash flow from operations was $3.6 million and cash balances increased to $4.0 million • Production from the extended Area 1 expected to exceed Reserve by over 60% • New Ore Reserve for Area 2 calculated at 197,000 tonnes at 21 g/t for 133,000 ounces of gold • System is open at depth with new targets identified • CBA increases debt facility to $8m and term to March 2008 • Exploration spend was $0.7 million • Re-logging of the historical drill core at 309 has provided a much clearer picture of the geology of key structural and lithological controls on gold mineralisation. Assists with 309 resource expansion and regional programme • Area 3 and Lone Sister pit optimisation studies are underway • Management changes Forecasts Gold production for the 2006 year is expected to be 20,000 to 22,000 ounces ramping up to approximately 70,000 ounces in 2007. The Company is targeting a cash cost of $350/oz for 2007.
BMO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)