the fact on bmo 25 October 2006September 2006 Quarterly...

the fact on bmo 25 October 2006
September 2006 Quarterly Review
Executive Summary
• Mine and mill operations performed as forecast during the quarter
• Gold shipments were 11,457 oz (including 428 ounces from ore purchases) and 16,115 ounces ytd
• Head grade of crushed ore processed was 14.4 g/t
• Cash costs were approximately $480/oz
• Average gold price received $819/oz
• Cash flow from operations was $3.6 million and cash balances increased to $4.0 million
• Production from the extended Area 1 expected to exceed Reserve by over 60%
• New Ore Reserve for Area 2 calculated at 197,000 tonnes at 21 g/t for 133,000 ounces of gold
• System is open at depth with new targets identified
• CBA increases debt facility to $8m and term to March 2008
• Exploration spend was $0.7 million
• Re-logging of the historical drill core at 309 has provided a much clearer picture of the geology of key
structural and lithological controls on gold mineralisation. Assists with 309 resource expansion and regional
programme
• Area 3 and Lone Sister pit optimisation studies are underway
• Management changes
Forecasts
Gold production for the 2006 year is expected to be 20,000 to 22,000 ounces ramping up to approximately
70,000 ounces in 2007. The Company is targeting a cash cost of $350/oz for 2007.