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Quarterly Report April – June 2013

Quarterly Report April – June 2013

Key Points

  • HENTY:
    • Quarterly production of 13,212 oz gold at cash cost of $979/oz incl. royalties
    • Exploration drilling targeting southern extensions of Read has also extended Darwin South mineralisation; results include 8.35m at 19.4 g/t and 6.2m at 14.8 g/t  gold
    • Earthworks for access road 70% complete, boxcut 80% complete
    • Assessment of options to realise value from Bendigo Assets impacting finalisation of project funding and concentrate processing options
    • Resolution of funding expected in August
  • $27.5M cash in bank, with an additional $11.2M held in bonds


Andrew McIlwain, Managing Director & CEO comment “As announced earlier this month, Henty again had a successful quarter, with high grade ore lifting production to 13,212 oz. Importantly, Henty’s full year production of 43,851 oz was within guidance. Notwithstanding this solid performance, and mindful of the recent gold price volatility, we have initiated a comprehensive review at Henty aimed at reducing operating costs and improving margins.

“At Dargues, pre-construction earthworks are nearing completion. Completion of the site access road is a prerequisite for plant construction, with underground mining and plant construction scheduled to begin in September, pending final Board approval. A key factor in the Board approval is securing appropriate project funding. While Unity has the support of major banking sources, the sale of our Bendigo assets has the potential to considerably reduce the quantum of additional funding required to bring the Dargues project into production, further enhancing financial returns.

“The decision on how best to realise value from our Bendigo Assets will allow us to finalise the capital costs for the Dargues Gold Mine development, and a comprehensive update of the project financials and timelines will now be provided in August” said Mr McIlwain.


  • Henty Gold Mine produced 13,212 oz at a cash cost of $979/oz which includes royalties of $50/oz, (12,061 oz gold at $991/oz in March 2013 quarter).


  • Preliminary earthworks, including construction of site access roads, ROM pad and mine boxcut continued at Dargues Gold Mine


  • Drilling during the quarter was focused on identifying extensions to the mineralisation at Read and Darwin South.
  • GoldStone Resources (34% owned by Unity Mining) announced the signing of a JV with Randgold over its Sangola project in Senegal, and positive results from its inaugural drilling at the Ngoutou project in Gabon.


  • Gold sales were $23.3 million during the quarter from the sale of 16,860 oz gold at an average price of $1381/oz.
  • Cash in bank was $27.5 million at 30 June 2013 ($24.5 million at 31 March 13)