Ann: Trading Halt, page-95

According to CYLs releases on the acquisition, reading between the lines, they are saying the previous owners didnt have a clue - no exploration to replace current reserves and improve grade, so it seems they have just been muddling along following what is in front of their nose, leading to underutilized mill and lower and lower grades over time.

the mine has been going for 23 years, but CYL reckons no new exploration for the last 10. In the 23 years of operating life they have mined 1.4Moz at 9g/t But right now their reserves are 300Kt at 4g/t (something like that)

In light of that, CYLs plan seems rather simple in concept - find more high grade gold and mine that.

From the 21 dec announcement:

 Raise mine grade, focus on grade not tonnes
 Near mine exploration (high grade drill results in past month)
 Zone 96HW (2.95m @ 22.6g/t Au;3.0m @16.9g/t Au; 6.15m @
22.7g/t Au)
 Intermediate zone (2.6m @ 21.7g/t Au)
 Collar Zone (2.5m @ 24.7g/t Au; 4.1m @31.1g/t Au)
 Commence corridor exploration
 Develop mine plan based on higher grade with narrower mining
equipment