Quarterly Report July – September 2014

Key Points

• HENTY:
  • Continued strong operational performance at Henty with quarterly production of 12,832 oz gold at a cash operating cost of $976/oz – considerably ahead of plan
• DARGUES:
  • Technical studies of alternate processing options nearing completion with results expected in December quarter

Summary

Andrew McIlwain, Managing Director & CEO comment “As we flagged recently, Henty has continued to deliver a consistent strong production performance,  building on the significant turnaround in its operating results achieved last quarter. Importantly, these results have seen substantial cash build over the quarter and see us considerably ahead of plan on most operating metrics.

“Grade performance from Read Zone continues to impress, with much of the outperformance during the quarter attributable to higher than forecast recovered grade from the Read mining blocks. Significantly, the mining schedule sees Read remain an important contributor to production in the December quarter.

“In conjunction with the grade control drilling at South Darwin, which has increased the grade and ounces expected to be recovered when this area is mined, our robust mining schedule means we remain optimistic of sustaining the improved production and operating cost performance ” said Mr McIlwain.

Production

• Henty Gold Mine produced 12,832 oz at a cash cost $976/oz including royalties, with all-in sustaining cost (AISC) of $1028/oz, (11,983 oz gold at a cash cost of $988/oz and AISC of $1123/oz in previous quarter).

Development

• Dargues project currently on care & maintenance. Results of detailed technical studies and cost reduction investigations expected in next quarter.

Exploration

• Drilling at Henty continues to focus on identifying extensions to the mineralisation at Read Zone, Darwin South and the Zone 15 “noodle”.
• Best result at the Zone 15 “noodle” was 0.75 m (down hole) at 100.85 g/t gold

Corporate

• Gold sales were $20.2 million during the quarter from the sale of 14,586 oz gold at an average price of $1383/oz.
• Cash at bank was $11.9 million at 30 September 2014 ($6.8 million at 30 June 2014)