Millennium Minerals Limited (Millennium or Company – ASX: MOY)...

Millennium Minerals Limited (Millennium or Company – ASX: MOY) Millennium Minerals (ASX: MOY) provides the following update on its production and cost guidance for the year to December 31, 2017. As advised in its March 2017 quarterly report, production and costs at its Nullagine gold project in the Pilbara in the March quarter, 2017 were impacted by heavy rainfall. Production totalled 16,543oz, which was just ~3500oz below budget. All-in sustaining costs were A$1362/oz. These results compare with Millennium’s production guidance for CY17 of 80-85,000oz at an AISC of A$1190-1220/oz. Since the end of the March quarter, Millennium has experienced further interruptions to mining and haulage resulting from heavy rainfall during the first week of May. This has delayed dewatering at several pits which has in turn delayed the ramp-up of mining and haulage. To help offset these impacts, Millennium has processed a greater-than-expected portion of low-grade stockpiles and incurred additional costs in this quarter to improve productivity and rebuild higher-grade stockpiles. This includes additional dewatering activities, mobilising additional mining fleets and a ramp-up in haulage activities to restore high-grade ore stockpiles at the processing plant. During this quarter, the Company has also undertaken an extended mill shutdown to perform a series of planned and longer-term preventative maintenance activities. This decision was aimed at improving both productivity and availability of the processing plant as high-grade stockpiles are rebuilt. In light of these factors, Millennium believes production in the June 2017 quarter will be in the range of 19,000 - 21,000oz at an AISC of A$1340 – A$1380/oz. The issues which have impacted costs in the first half will have no adverse impact on costs in the second half. However, costs in the second half are unlikely to be reduced by enough to completely offset the higher costs incurred in the first half. Millennium is currently reviewing its mine plan for the second half with a view to fast-tracking a cutback at the Bartons pit as well as increasing mining at the higher-grade pits of Roscoes Reward and Majuba Hill. This review is expected to be completed by the end of the June quarter, at which point the Company will provide updated cost and production guidance for the year to December 31, 2017.