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Quarterly Report April – June 2014

Quarterly Report April – June 2014

Key Points

  • HENTY:
    • 11,983 oz of gold produced at a cash operating cost of $988/oz
    • FY14 full-year production result of 38,067 oz gold, within recent guidance range
    • Drill testing for continuation of high grade Darwin South orebody to commence in July
    • Technical studies assessing a range of processing options underway


Andrew McIlwain, Managing Director & CEO commented “Henty delivered a significant turnaround in its performance during the quarter.

“With the focus on delivery to plan and schedule, the team has produced a tremendous result, particularly in June with the mine delivering budget tonnes and a substantially higher grade to the mill, to conclude an otherwise tough year. Close management of the process plant, with a meticulous attention to grind sizing, saw gold recovery increase to over 96% in June.

“Strong grade performance from the Read Zone contributed to improved overall head grades. Additional working faces and producing stopes mitigated the production impacts seen in previous quarters from ground conditions.

“The Company continues to pursue a focus on cost reduction and cash generation. As announced post quarter end, Henty will move to the recovery of known reserves and wind down to a care and maintenance basis toward the end of 2015.

“We are committed to delivering a significant turnaround in the profitability of Henty over the remainder of its reserve life. This will underpin the objective of pursuing the advancement of the Dargues project and realising the exploration potential of Unity’s extensive tenement holdings – particularly immediately adjacent to the Henty Mine” said Mr McIlwain.


  • Henty Gold Mine produced 11,983 oz at a cash cost $988/oz including royalties, with all-in sustaining cost (AISC) of $1123/oz, (7250 oz gold at a cash cost of $1380/oz and AISC of $1620/oz (amended) in March 2014 quarter).


  • Dargues project currently on care & maintenance. Technical studies and capital and operating cost reduction investigations continuing.


  • Drilling at Henty continues to focus on identifying extensions to the mineralisation at Read Zone, Darwin South and the Zone 15 “noodle”.
  • Best result at Darwin South include 4.9 m at 8.7 g/t, 4.5 m at 14 g/t, and 1.6 m at 112.9 g/t gold.


  • Gold sales totalled $13.8 million during the quarter from the sale of 9965 oz gold at an average price of $1386/oz.
  • Cash at bank was $6.8 million at 30 June 2014 ($7.9 million at 31 March 2014).