From today's ASX Query response and Upgrade announcement:In the...

From today's ASX Query response and Upgrade announcement:

In the March Quarter Appendix 5B Report the Company reported a $1.4 million operations cash deficit for the past quarter. However, there was an estimated $1.37 million in gold bullion inventory unsold and not included as a cash equivalent in the quarter.

If this inventory had been included, it would have resulted in a cash neutral position, after allowing for development into gold-bearing areas which will be mined in the next quarter at the Hill End Mine.

It is forecast that the Hill End operations will be self-sustaining, covering both operating and development costs with corporate costs funded out of existing cash reserves. Expansion of the mine may be funded through new equity raisings.

Over this past week the Hill End gravity gold processing plant has been upgraded to increase throughput and to reduce downtime, while maintaining gold recovery at an excellent 97% with no change to the process design.

The Company does not expect in future to have negative operating cash flows similar to that reported in the Appendix 5B for the March 2009 Quarter, except for accelerated underground development expenditure, which may be funded out of future equity raisings.

Over this past week the Hill End gravity gold processing plant has been upgraded to increase throughput and to reduce downtime, while maintaining gold recovery at an excellent 97% with no change to the process design.

The maintenance and upgrades were carried out according to plan in a timely and effective manner by Hill End Gold personnel. The installations will be optimised over the current week and a moderate uplift in plant throughput capacity is anticipated.