By - admin

Quarterly Report October – December 2012

Quarterly Report October – December 2012

Key Points

  • Cortona Resources scheme merger approved and implemented
  • Quarterly production of 11,478 oz gold at $1101/oz incl. royalties
  • High grade drill results continue at Read Zone, with resource update pending
  • Exploration drive commenced to test and access potential southerly extensions of the Read and Darwin South lodes
  • $36.4M cash in bank, plus $3M of gold in transit


Andrew McIlwain, Managing Director & CEO comment “Unity’s transition to a midtier gold producer has commenced, with the merger with Cortona implemented  following the overwhelming vote in favour by Cortona shareholders in late December. Technical studies targeting the maximum reuse of the Kangaroo  Flat gold plant at Dargues Gold Mine are in the final stages, and an updated project plan including details on the identified capital savings and revised construction  timelines will be released this quarter. With development of the Dargues Gold Mine imminent, Unity is now firmly on the path to being a diversified 100,000 oz/year  gold producer.

“As forecast, increased tonnage from the high grade Read Zone has enabled us to lift production rates during the quarter, at a recovered grade above the current reserve and resource grades. Exploration results at Read continue to demonstrate the high grade tenor of this ore body and significant increases in Read Zone resources are anticipated in our forthcoming Resources & Reserve update.

“While continuing to explore and develop the Henty mine, we remain focused on delivering a full-year production result within our guidance range of 45-55,000 ounces” said Mr McIlwain.


  • Henty Gold Mine produced 11,478 oz at a cash cost of $1101/oz which includes royalties of $54/oz, (7100 oz gold at $1597/oz in September 2012 quarter).


  • Drilling during the quarter was focused on both resource extension and identifying zones of high grade within the mineralised envelope at Read. Best results include 3.15 m at 268.7 g/t gold, including 0.65 m at 906 g/t and 0.3 m at 816 g/t
  • GoldStone Resources (34% owned by Unity Mining) announced a further resource update for the Homase/Akrokerri project in Ghana. Exploration drilling also commenced at the Oyem project in Gabon with encouraging early results.


  • Cortona Shareholders voted overwhelmingly in favour of the merger, which was implemented on 23 January 2013. The combined group is expected to produce around 100,000 ounces of gold per annum once the Dargues Reef Project reaches full production.
  • Gold sales were $17.5 million during the quarter from the sale of 10,596 oz gold at an average price of $1650/oz.
  • Cash in bank was $36.4 million at 31 December 2012 ($39.4 million at 30 September 2012). At the close of the quarter, the Company had a further 1933.5 oz of gold in  transit, valued at $3M. In addition, $8.0 million remains held in bonds to meet rehabilitation liabilities.