I made a phone call to get the latest.we have 4 mine faces (from...

I made a phone call to get the latest.

we have 4 mine faces (from 2 stopes) on the Eastern side of Warrior and another 4 mine faces now (from 2 stopes) on the West side of Warrior.

so total of 8 mine faces and 4 stopes.

so things are on the up and CTO should begin to ramp up this quarter with the additional mine faces coming on stream - CTO does not want to dip into any more borrowings - it is aiming to avoid drawing on the next $15 mill.

the aim is to progressively increase the number of faces to 15 in total... so another 7 faces will be added to the Western side of warrior.

Out of these 15 mine faces only 10 will be operating simultaneously - and the ore extracted will be blended, in order to get a consistent 9g/T -10 g/T which includes development ore.

The only risk at the moment with only 8 mine faces is the consistency of the ore - the grade may be unpredictable, either up or down next quarter - so a bit of a lucky dip.

15 stopes should get Warrior to a maximum of 100,000 oz/annum ! .. forget 40,000 oz/annum (old announcements) we're talking about the possibility of 100,000 oz/annum.
because Warrior is bigger and higher grade than first thought.
CTO is in fact aiming for 100,000 oz/annum from Warrior.

The reason why the Eastern side of Warrior wont be adding more stopes is that we are getting close to the edge of the mining lease boundary.
Although CTO owns the exploration area next door to the East boundary ..the mining lease hasn't been granted yet.
The EPA requirements have all been met, just the usual red tape.

so this hasn't altered anything , it means we will also (once granted) add a larger prospective area , which could potentially add another 1.5 kms of strike and a bigger Warrior again... possibly allowing more stopes on the East to be added and a production past 100,000 oz/annum.

anyway, we should see a small and steady increase in production from now on - maybe 25,000 oz/year by June.

We should hit 3,000 oz/month .. about 9,000 oz/Quarter around September.

we should be at 100,000 oz/annum at Warrior within 18 months... i think it's a safe bet.

The surplus positive cash flow past the 25,000 oz/annum June stage should fund the Sunburst development... but Sunburst once added could get us past 150,000 oz/annum towards 200,000 oz/annum even... just from 2 areas.

so things are looking up .. and we're talking about cash costs of Aus$350/oz .. as low as they get.

sorry about the wordy report... i wanted to convey the message.