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Quarterly Report January – March 2014

Quarterly Report January – March 2014

Key Points

  • HENTY:
    • Quarterly production of 7250 oz at a cash cost of $1380/oz
    • Read Zone drilling results include 0.4 m at 394 g/t and 1 m at 115 g/t gold
    • Technical studies and cost reduction programs continuing
    • Near-mine & regional exploration programs underway looking for analogues to Dargues mineralisation
  • $7.9M cash at bank, with an additional $11.2M cash-backed performance bonds


Andrew McIlwain, Managing Director & CEO comment “Corporately, Unity received strong support in the completion of its fully underwritten Shareholder  Purchase Plan (SPP). Underwritten by Patersons Stockbroking, the SPP raised a net total of $6.1m.

“Further to this, our largest shareholder, LionGold demonstrated their continued support with commitment to invest a further $2.4m (payable in April 2014) to take their stake in the unity to 19.9%. LionGold has also entered into a voluntary escrow agreement for its original 92.6M share holding, providing further assurance of their long term intentions.

“The quarterly production result from our Henty operation improved only marginally from the previous quarter’s performance with continued combined grade and tonnage challenges.

“Our exploration efforts continue to deliver enticing results with southern extensions to current working areas targeted from the recently completed 1950 Southern Exploration Drive.

“Cost control is a key focus of the group and importantly the previously reported significant reduction in costs at Henty has been sustained. An unfortunate component of this cost focus has included the necessary reduction in personnel across the group and it is important to ensure we maintain focus on delivering target outcomes.

“We continue to work on delivering a superior outcome for our Dargues Project. A key element in this is to verify the optimum processing solution. This includes clarification with the Victorian regulatory authorities of our Bendigo processing option, as well as exploring with third parties and NSW authorities various alternatives. Whilst frustrating not to be developing the Dargues Project, we continue to be confident of the Project’s future.

“A very pleasing outcome this quarter has been Henty’s achievement of 1 year free of Lost Time Injury. This is an outstanding achievement and a credit to all personnel to ensure that they achieve our committed objective of going home safely at the end of each day” said Mr McIlwain.


  • Henty Gold Mine produced 7250 oz at a cash cost $1380/oz including royalties, with all-in sustaining cost (AISC) of $1567/oz, (7227 oz gold at AISC of $1885/oz in Dec 2013 quarter).


  • Dargues site currently on care & maintenance. Technical studies and cost reduction programs continuing.


  • Drilling at Henty continues to focus on identifying extensions to the mineralisation at Read and Darwin South.
  • Best result at Read Zone include 0.4 m at 394 g/t and 1.0 m at 115 g/t gold.


  • Gold sales were $10.0 million during the quarter from the sale of 6886 oz gold at an average price of $1447/oz.
  • Cash at bank was $7.9 million at 31 March 2014 ($9.7 million at 31 December 2013).