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Quarterly Report January – March 2013

Quarterly Report January – March 2013

Key Points

  • HENTY:
    • Quarterly production of 12,061 oz gold at cash cost of $991/oz including royalties
    • Significant extensions to the mineralised envelope at Read Zone
    • Regional drilling suggests that the mineralised system could extend up to 3km south of the Read Zone along Henty Fault.
    • Earthworks commenced at Dargues Gold Mine
    • ~10% capital savings identified to date, further savings expected
    • Key personnel recruited
  • $24.5M cash in bank, plus $9.1M of gold bullion available for sale


Andrew McIlwain, Managing Director & CEO comment “As anticipated, gold production at Henty has continued to improve, with multiple production areas delivering an increasing mining rate from the high grade Read Zone. Significantly, this production result saw Henty put money in the bank this quarter. Exploration  results at Read continue to impress, and are set to provide a strong platform for further resource upgrades.

“Preliminary earthworks commenced at our Dargues Gold Mine in February. A number of technical and economic reviews are now being finalised including the study of the reuse of the Company’s idled Kangaroo Flat gold plant and I anticipate announcing further details of the meaningful improvements in project capital costs and development timelines shortly” said Mr McIlwain.


  • Henty Gold Mine produced 12,061 oz at a cash cost of $991/oz which includes royalties of $69/oz, (11,478 oz gold at $1101/oz in December 2012 quarter).


  • Preliminary earthworks, including construction of site access roads, ROM pad and mine box cut commenced at Dargues Gold Mine on 11 February.
  • 10% saving in up-front project capex identified to date, with additional savings expected.


  • Drilling during the quarter was focused on identifying extensions to the mineralised envelope at Read. Infill drilling has also increased confidence in the high grade zones already contained in the Read Zone resource.
  • GoldStone Resources (34% owned by Unity Mining) announced further positive results from its inaugural drilling at Oyem project in Gabon.


  • Gold sales were $11.2 million during the quarter from the sale of 7054 oz gold at an average price of $1589/oz.
  • Cash in bank was $24.5 million at 31 March 2013 ($36.4 million at 31 December 2012). At the close of the quarter, the Company had a further 5967 oz of gold bullion  available for sale, valued at $9.1M. In addition, $11.2 million is held in bonds to meet rehabilitation liabilities.