Ann: Production and Exploration Update, page-14

Had been expecting a production and exploration update ahead of the quarterly and here we have it.

Gold production is below what I expected but I note total tonnes moved has reduced significantly and there was a steady rise in amount of ore mined so basically it seems a lot of work was removing overburden and establishing the pit and strip ratio has been significantly reduced. I would say that most of that was at hicks, OC had ore near surface and it's only trail mining there.

We have know about the potential of Smarts underground from the beginning but it needed more drilling to prove it up, try have had other more pressing issue to deal with and had not progressed with more work on Smarts underground. Ken had mention more recently after more issue with the Smart 3 pit that it was worth looking at spending the money that would be require on another cut back in Smarts 3 on a decline for Smarts underground but that would require more drilling of Smarts underground and that brings us to now.

This is not the first time try have found that the direction of the drilling has missed significant mineralisation and we see that with the latest drill results at Smarts underground. Previously delineated a Mineral Resource (all categories) at Smarts Underground of 3 million tonnes at 3.0 g/t Au for approximately 290,000 ounces, looks like that can be significantly increased.

Smarts underground has the potential to at least 4 year or more to LOM, while not huge in it's self, that is time and money to explore know targets and find new ones. Smarts underground would require a fair bit of Cap-ex, whether that can be funded from profits or require a CR is a question

Gold Star looking better and is a resource that could be developed before long, while gold star, Larken and spearpoint are all relatively small deposits collectively they provide a decent amount of ore that can be mined in the near term