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Quarterly Report July – September 2011

Quarterly Report July – September 2011

Key Points

  • Mine operating cashflow of $7.1M
  • Quarterly production of 10,440 oz gold at $1051/oz
  • Mineral Resources increase by 57% to 318,000 oz gold
  • Newton Zone continues to grow at depth
  • High grade drill results at Homase/Akrokerri, Ghana


Rod Hanson, Managing Director & CEO comment “Gold production for the September quarter was 10,440 ounces at a cash cost $1051/oz (including royalties
of $157/oz). Production was impacted by processing an increased quantity of lower grade Newton Zone development ore, as development accelerated to bring this new
and growing ore body into production. It is anticipated that ore grades will increase and royalties per ounce decrease as Newton stoping blocks are brought on line.

The Newton Zone continues to deliver high grade gold intercepts which have substantially enlarged the interpreted zone of mineralisation. Additional development is underway to provide a platform for continued testing , and I am confident that we will see further resource additions at Newton, which remains open at depth.

In West Africa, GoldStone’s exploration program ramped up during the quarter, with the results from the initial drilling program at the key Homase project in Ghana confirming the extension of the high grade gold shoot under the northern part of the Homase pit. Ongoing drilling will continue to test down dip and along strike for further extensions to the current 405,600 oz gold resource” said Mr Hanson


  • Henty Gold Mine produced 10,440 oz at a cash cost of $1051/oz which includes royalties of $157/oz, (12,859 oz gold at $855/oz in June 2011 quarter).


  • Drilling continues to reveal depth extensions of the Newton Zone with best intercepts of 8.0 m at 11.9 g/t and 5.1 m at 14.6 g/t gold.
  • Mine life was further extended, with an updated resources and reserves statement outlining 107,000 oz of Ore Reserves and 318,000 oz of Mineral Resources.
  • Exploration on the Bendigo Exploration Licences under the Farm-In arrangement with Drummond Gold continued to search for black shale sediment -hosted gold  mineralisation.
  • GoldStone Resources (33% owned by Unity Mining) announced the initial results from the drilling program Homase/Akrokerri, Ghana, confirming the extension of the high grade gold shoot under the Homase pit.


  • Gold sales were $17.2 million during the quarter from the sale of 10,539 oz gold at an average price of $1630/oz.
  • Cash in bank was $41.7 million at 30 September 2011 ($41.8 million at 30 June 2011). In addition, $6.3 million is held in bonds to meet rehabilitation liabilities. Mine operating cashflow was positive $7.1 million before capital and exploration expenditure of $5.1M and other corporate expenditures and changes in working capital.
  • Changes to senior management were announced. The search for a new Managing Director & CEO is well advanced.