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QUARTERLY REPORT April – June 2010

QUARTERLY REPORT April – June 2010

Key Points

  • Quarterly gold production of 19,463 oz
  • Acquired 20% of West African gold explorer GoldStone Resources
  • Henty Tyndall Zone resource increases by 100% with addition of 36,600 oz
  • Cash in bank of $57.2 million


Rod Hanson, Managing Director & CEO comment: “Gold production increased by 10% this quarter to 19,463 ounces and contributed to a full year production result of 79,827 ounces, in line with previous guidance. We also doubled the resource size of the Tyndall Zone at Henty to 72,700 oz gold, supporting our belief that Henty remains under-explored and has great potential.

“In May, we were pleased to announce a Strategic Alliance with West African gold explorer GoldStone Resources to provide exploration exposure and potential future production opportunities in one of the most attractive locations for new gold discoveries globally. Our strong balance sheet continues to support our growth of the Company through exploration, development and acquisition” said Mr Hanson.


  • Total gold production of 19,463 oz at a cash operating cost of A$976/oz (17,747 oz gold at A$984 in Mar 10 qtr).
  • Henty Gold Mine produced 10,009 oz at a cash cost of $1072/oz, whilst  the Kangaroo Flat Mine delivered 9454 oz at a cost of A$875/oz.
    • Full year production of 79,827 ounces was a 116% increase on the previous year reflecting the Henty acquisition.


  • Successful infill drilling delivered a 100% increase in the Tyndall Zone resource along with a 15% increase in estimated grade to 7.8 g/t gold.
  • Henty up-dip drilling program returned 0.8 m (down hole) at 30.6 g/t gold above the southern part of Zone 15. Follow-up drilling is planned.
  • Exploration drilling at the Kangaroo Flat Mine has confirmed a southern extension of Westcott reef, and encouraging results south of the Kangaroo
  • Flat Mine at Spring Gully.


  • Gold sales receipts were $24.7 million during the quarter from the physical sale of 18,279 oz gold at an average price of A$1353/oz. Mine operating cashflow was positive $6.7 million.
  • Invested $4.3 million to acquire and maintain 20% of AIM-listed West African gold explorer GoldStone Resources.
  • Cash in bank remained unchanged at $57.2 million at 30 June 2010 ($57.4 million at 31 March 2010)