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Quarterly Report July – September 2013

Quarterly Report July – September 2013

Key Points

  • HENTY:
    • Quarterly production of 11,607 oz gold at cash cost of $1065/oz
    • Exploration drilling has extended Darwin South mineralisation; results include 8.35 m at 19.4 g/t and 6.2 m at 14.8 g/t
    • Drilling also continued to identify high grade zones within the envelope of the Read Zone
    • Access road complete; mining contractor mobilised to commence portal development
    • Bendigo plant to be re-tasked to support Dargues project; crush & grind equipment to be relocated to NSW, gold concentrate to be processed at Bendigo
    • CBA mandated to provide $45M gold loan funding package
  • $19.7M cash in bank, with an additional $11.2M held in bonds


Andrew McIlwain, Managing Director & CEO comment “High grade ore from Read and Darwin South has seen Henty deliver a solid production result of  11,607 oz. The continued volatility and recent lows in the gold price means that margins remain under pressure. Like our industry peers, we are focused on developing and implementing strategies to ensure our operations remain viable in a sustained lower gold price environment. We remain committed to the production of 40- 50,000 ounces at Henty this financial year, and are determined to both reduce operating costs and improve head grade. We have a comprehensive set of  initiatives  underway including dilution reduction programs, mining fleet optimisation and a site-wide review of current manning levels to ensure this production outcome delivers appropriate margins.

“Notwithstanding the longer than forecast completion of our initial works at Dargues, including delays associated with minor amendments demanded through planning processes, work is progressing well, with the site access road and boxcut excavation completed. With the path to processing concentrate at Bendigo now resolved, we are working to finalise the funding path for the project including credit approval of the debt facility with Commonwealth Bank” said Mr McIlwain.


  • Henty Gold Mine produced 11,607 oz at a cash cost $1065/oz including royalties, with all-in sustaining cost (AISC) of $1335/oz, (13,212 oz gold at AISC of $1175/oz in June 2013 quarter).


  • Completion of the mine access road and boxcut excavation at Dargues Gold Mine. Mining contractor mobilised to complete ground support of boxcut and commence portal development.


  • Drilling at Henty continues to focus on identifying extensions to the mineralisation at Read and Darwin South.
  • Exploration drilling also commenced at Dargues, testing for western extensions to the Ruby Lode. NSW regional mapping work in also in progress.


  • Gold sales were $17.5 million during the quarter from the sale of 12,050 oz gold at an average price of $1455/oz.