Hannes Huster : Hi Campbell! Thank you to you today for an...

Hannes Huster : Hi Campbell! Thank you to you today for an interview with me for taking the.

Let's first look back to 2010th Focus Minerals has produced 77,000 ounces of gold and thus reached a new record gold production. What other milestones reached the company in the last 12 months?

Campbell Baird : Thank you Hannes. True, the 77,000 oz gold production was an important milestone for our company, but I see three other important progress we have achieved in 2010:

First, we could take our Three Mile Hill gold processing facility within 6 months in operation and take the designed capacity upwards. This is a great achievement and a great platform for the year 2011.

The second milestone was that we in the December quarter could move up the Tindal underground mine at full production rate of 540,000 tonnes per year.

And finally we have the first stage of development of The Mount Gold finish project. The Mount is a completely new underground mine and we were able to eliminate more than 39,000 tonnes averaging 8.0 g / t. We have just launched the next phase in which we increase the production of The Mount to over 30,000 tons per month at 5.5 g / t gold.


Hannes Huster : In the December quarter could well focus ounces of gold produced 21,000, which increased by 37% over the previous quarter, representing a. Where is the production target for 2011 and 2012?

Campbell Baird : We want 2011 to produce 100,000 ounces of gold and the goal for 2012 is 130,000 ounces. We now have the Tindal underground mine in production, the THE MOUNT project to full capacity even boot up and in addition we will be middle of the year, a new high grade open pit mine near Tindale in production take.


Hannes Huster : The average gold grades were in the September quarter "only" 2.03 g / t. Do you think that the new operations, the gold grades are increasing all along?

Campbell Baird : Yes, we are confident that gold grades may increase even average. We already have an improvement of 2.03 g / t to 2.18 g / t in the December quarter saw what larger proportion of the ore from the Tindal underground mine is due to the.

Here we have in the last quarter a new record of 151,000 tonnes averaging 3.56 g / t or produce 17,000 ounces of gold in the quarter.

We calculate with the fact that we're alone in the Tindal underground mine on average 135,000 tons per quarter with at least 3.5 g / t gold can promote!

In March this will be complemented by the excellent high-grade ore from the mine THE MOUNT. We expect that we can raise within 6 months, the production rate to around 30,000 tonnes per month with about 5.5 g / t!

Finally, we will also start the Tindal open pit mine in the June quarter. There we expect additional 30,000 tons per month with an average of 2.2 g / t gold.

So this is very good ore from the three producing mines and the low-grade deposits that we are stockpiled to be used up gradually.

2011 will be a great year for Focus Minerals!

Hannes Huster : That sounds great! Where is the internal target for production cost per ounce in 2011?

Campbell Baird : We were very pleased to already cash-quarter from 877 AUD to have reached in December and a cost of 500 AUD per oz margin could realize Sun We aim in 2011 in the range from 800 AUD to press the charges.


Hannes Huster : Focus Minerals is also very active in exploration. Last year, we have some very good drill results from Perseverance project as seen, for example, 4.4 m @ 13.3 g / t gold and 2.2m @ 27.8 g / t gold. Even as the holes on Happy Jack with incredible 55.6 g / t gold over 8 meters were still outstanding.

Where are drilled to date and what are your favorites for 2011?

Campbell Baird : For 2011 I have several favorites. Treasure Iceland is clearly a flagship project. This project is still at a very early stage and is located on the southern extension of world-Boulder-Lefroy-faults. This is the same geological system in which the well-known Super-PIT is. Initial exploration work on the project showed some unusual surface samples with gold values of up to 55 g / t.
END of part one