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Quarterly Report July – September 2012

Quarterly Report July – September 2012

Key Points

  • Announced proposed Merger with Cortona Resources
  • Quarterly production of 7100 oz gold at $1597/oz incl. royalties
  • High grade Read Zone accessed this week, 6 months ahead of plan
  • Maiden Mineral Resource for Read Zone (69,000 tonnes at 12.5 g/t gold for 28 koz).
  • $39.4M cash at bank


Andrew McIlwain, Managing Director & CEO comment “The proposal to merge with Cortona is the culmination of an extensive review of the opportunities  available to grow and diversify our business. We are excited about the prospects for the Dargues Reef Project, and are confident that our financial resources and management capability will help to accelerate its development. The combined company, with targeted annual production of around 100,000 ounces, will be a strong  platform for further growth.

“As recently announced, a focus at Henty on development to the high grade Read Zone during the quarter has enabled us to schedule first ore from Read in October, six months earlier than originally planned. However, a consequence of some one-off operational issues together with the push to accelerate development to Read has
been a below-par production result in the September quarter, and a retiming of our production profile. Subsequent quarters are planned to recapture the production
that was forgone as higher grade ore from the Read Zone comes on line, significantly increasing the average head grade. We remain committed to delivering against our full-year guidance of 45-55,000 ounces this financial year.

“GoldStone’s exploration programs continued to yield further encouraging results, including a resource upgrade to 502,000 ounces at the Homase/Akrokerri project in  Ghana. Drilling is also underway at the Oyem project in Gabon, testing a 15 km long gold anomaly ” said Mr McIlwain.


  • Henty Gold Mine produced 7100 oz at a cash cost of $1597/oz which includes royalties of $117/oz, (10,692 oz gold at $1148/oz in June 2012 quarter).


  • Read Zone drilling results including 1.5 m at 22.9 g/t, 3.0 m at 23.6 g/t and 1.9 m at 22.4 g/t gold have continued to demonstrate the high grade tenor of the mineralisation.
  • Exploration drilling at Newton has now identified the lower boundary of the mineralisation to the north. The zone remains open down-dip to the south.
  • GoldStone Resources (34% owned by Unity Mining) announced a resource update for the Homase/Akrokerri project in Ghana. Exploration has also advanced at projects in Senegal & Gabon.


  • Announced proposal for merger with Cortona Resources.
  • Reported full-year net profit of $12.9 M for FY12.
  • Gold sales were $13.7 million during the quarter from the sale of 8586 oz gold at an average price of $1593/oz.
  • Cash in bank was $39.4 million at 30 September 2012 ($44.3 million at 30 June 2012). In addition, $8.0 million is held in bonds to meet rehabilitation liabilities.