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Quarterly Report January – March 2012

Quarterly Report January – March 2012

Key Points

  • Quarterly production of 11,357 oz gold at $1112/oz
  • Updated Resources & Reserves extend mine life to 5 years
  • Option Agreement signed with Catalyst Metals to acquire Bendigo assets
  • Announced on-market buyback of up to 50.9M shares
  • $47.8M cash at bank


Andrew McIlwain, Managing Director & CEO comment “I am pleased to report that over the past few months, Unity has delivered on a number of key  milestones that will provide the foundations for a strong future. Henty has delivered solid operational performance and with year to date production of nearly 40,000  oz, is on track to achieve towards the top end of our 40-50,000 oz /year production range. We have signed an option agreement with Catalyst Metals which establishes a mechanism to realise value from the Bendigo project in the near term, and retain exposure to further exploration success. We have also relocated corporate headquarters to Melbourne, commenced a share buyback program and reported a half year net profit of $9.1 million.

Most pleasingly, continued exploration success has increased Henty mine life to 5 years – a first for Henty. Further, recent in-mine exploration has expanded the high grade Read Zone, which will be included for the first time in our mid-year resource inventory. Drilling has also extended the Newton and Darwin South ore bodies,  making our aim of a rolling five year mine life all the more achievable.

In West and Central Africa, GoldStone’s exploration program continued at the Homase/Akrokerri project in Ghana, with a second drill rig added to accelerate the program. Drill contracts have also been signed to explore GoldStone’s projects in Senegal and Gabon.

Significantly, we have increased our cash at bank to $47.8m (up from $44.1m) further strengthening our potential to grow the company through merger or acquisition” said Mr McIlwain.


  • Henty Gold Mine produced 11,357 oz at a cash cost of $1112/oz which includes royalties of $189/oz, (17,569 oz gold at $757/oz in December 2011 quarter).


  • Read Zone drilling results, including 2.9 m at 40.3 g/t gold, have demonstrated the continuity of high grade mineralisation within an expansive envelope of background mineralisation.
  • GoldStone Resources (34% owned by Unity Mining) announced further results from the drilling program Homase/Akrokerri, Ghana, confirming the extension of the high grade gold shoot under the Homase pit. Drilling contracts signed for exploration in Senegal & Gabon.


  • Gold sales were $23.4 million during the quarter from the sale of 14,657 oz gold at an average price of $1599/oz.
  • Cash in bank was $47.8 million at 31 March 2012 ($44.1 million at 31 December 2011). In addition, $8.0 million is held in bonds to meet rehabilitation liabilities.
  • Option agreement signed with ASX-listed Catalyst Metals Limited for Catalyst to acquire the Kangaroo Flat gold plant and Bendigo assets.