Quarterly comments, page-49

There has been some discussion on the timing of the UG operations over the past few days. I'm not sure if Red has updated the 4 Oct, 2011 statement but I thought it was worthy input into the discussion.
"Pit shells have been calculated for gold prices from US$700 per ounce to US$1,800 per ounce. At US$1,200 per ounce, the entire Resource (known to drilling tests to date) can be exploited by open pit methods and delivers the highest net present valuation. However, the volume of waste generated under this scenario dominated the ground footprint held by the company and is not deemed to be desirable given various social and topographical considerations." Gold sits just below the US$1,200 or A$1,550  level so this should still be relevant. Further on in the release
"The Ore Reserve, mine plan and production schedule are still being reviewed. The revised resource offers the optionality to extend the open pit operating life and as a consequence delay the commencement of the underground phase." Sounds like the UG component may be delayed for a while. Elsewhere in the release it states that
"A cut-off grade of 0.8g/t (1.1 previously) and 2.0 g/t was used to define the Mineral Resource in the open pit and underground portions of the deposit respectively. Significantly, 81% (previously 60%) of the mineral resource is now within the indicated confidence category. The open pit Resource has been extended an additional 100 metres  and now accounts for 83% of the tonnes and 65% of the ounces (previously 48% and 31% respectively), an overall increase of 526,000 ounces." The present cutback strategy could indicate that the open pit will have an extended life.
I can not find any release to update this information so I assume it is current. An update of this is due in the release in Sept review of operations report.
Information in this post is for interest purposes only and should not be used for investment purposes.