chart now screems buy, page-23

re: mining news update Strong quarter by Giants Reef


Rebecca Keenan


Tuesday, October 19, 2004
NORTHERN Territory gold miner Giants Reef Mining has reported a strong third quarter from its Chariot gold operation, with 18,954 ounces poured at a cash cost of $277 per ounce.

Both output and costs were well ahead of the company's predictions back in July, when 14,300oz were budgeted at $390/oz.

Increased production and lower costs were the result of the first full month of long hole production stoping in August, when ounces recovered more than doubled July's figure.

In the December quarter ore for the Warrego plant is expected to be sourced from Chariot, Cat's Whiskers and Malbec West. The latter two deposits are part of Giants Reef's strategy to mine three to four small high-grade deposits each year.

The company's mainstay Chariot mine containing reserves at start-up last year of 407,000t grading 15.07gpt.

Meantime the company is waiting on results from a 2000m RAB drilling program testing four target areas identified following detailed ground based gravity surveys.

Giants Reef is hosting an analyst and investor site visit to its Tennant Creek operations later this week.

Shares in the gold producer were unchanged at 7.6c in early afternoon trade.