Ann: Chairman's Rocklands Progress Report , page-2

Well well an xw special, 2 letters for the price of one, plus some key development updates!

Key take aways;

Regarding the new NCu zones in LM..."Importantly, this new zone is within the area of the proposed starter pit meaning this is new zone is effectively free ore."

Better to be under their budget than over. With project managers and group accountants across all the numbers in the midst of all the development, $16M under at this stage bodes well.

"Infrastructure costs are currently running at $16m under budget compared to pre-development costing studies. Highly proficient management of assets, and innovative development methods, are resulting in considerable time and costs savings throughout the project.

By way of example, the use of large scrapers for removal and storing of organic and top soil for later use in rehabilitation, is costing an average of approximately $1.10 per Bank Cubic Metre (BCM), compared to pre-development estimates of $3.50 per BCM. The Project currently has two teams of 3 Scrapper each, moving a total of 16,000 BCM’s per day.
The Diversion Channel was estimated at $8.50 per BCM in pre-development studies, and is currently averaging just $3.50 per BCM."

It would seem the focus is 100% on getting the Rocklands plant commissioned and production underway. Exploration budget seemingly scaled back until production? Fair enough if every $ needs to be managed for the plant development to ensure it comes in under budget.

Still like this piece being front and centre by end Dec 2012. I just can't see it sitting idle whilst the rest of the plant is built over subsequent 10mths into 2013. Expect more detail on possible early cash flows once the crushing circuit is on site, bolted, welded together and wired up.

Crushing Circuit
We are advised by EMS/Index our suppliers of the crushing circuit that the crusher is to be transported to site by the end of September and that the foundations for the three stage crushing circuit will commence shortly. The area has been surveyed in preparation for contractors to arrive for the erection. The contract requires that the complete crushing circuit to be installed and commissioned by mid December 2012.