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(From Canada Newswire)
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/
JUNE QUARTERLY REPORT ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE 31 JULY 2012
Record gold production from the plant of 50,817 ounces (March Qtr 49,199 ounces) Record mill throughput of 1,728,751 tonnes (March Qtr 1,586,549 tonnes) Average throughput rate for the quarter equivalent to 6.9mtpa Cost per tonne fell to $22.76 from $23.24 in the March Qtr Cash operating cost US$784/oz (March Qtr $753/oz) Gross project operating cash flow of US$28.8M Cash and liquid assets as at 30 June 2012 were US$151.4M Summary of significant exploration drilling intersections for the quarter
Location Hole ID Intercept width Grade (g/t Au) Depth From
Libra East LERC040 24m 1.37 surface
LERC040 13m 1.96 252m
LERC042 36m 2.24 90m
LERC044 28m 1.47 131m
LERC047 73m 1.30 177m
LERC049 26m 1.85 193m
LERC060 25m 1.77 152m
Main Vein MV019 53m 1.28 204m
Panique PQRC094 10m 1.59 116m
PQRC096 12m 1.43 30m
HMBNW HMBNW026 22m 1.27 167
HMBNW028 19m 1.24 187m
Old Lady ODRC042 27m 1.20 129m
PERTH, Western Australia, July 31, 2012 /CNW/ -
MASBATE GOLD PROJECT UPDATE
Ore Mine (t) Average Grade Mined (g/t Au) Ore Milled (t) Head Grade (g/t Au) Recovery (%) Plant Availability (%) Total Production (oz Au) Cash Operating Costs (US $/oz)
June Quarter 1,599,837 1.06 1,728,751 1.05 83.3 93.4 50,817 784
The process plant throughput increased 9% to 1,728,751 tonnes at 1.05g/t (March Qtr 1,586,549 tonnes at 1.12g/t) which is a new quarterly throughput record.
Gold production increased 3% to a new quarterly record of 50,817 oz (March Qtr 49,199 oz) at a recovery of 83.3% (March Qtr 86.4%). The movement in the recovery % was affected primarily by decreased residence time.
Plant availability remained good at 93.4% (March Qtr 94.1%) with all areas of the plant performing well. The SAG mill continued to operate trouble free since recommissioning on 25 December with average throughput rates for the quarter of 6.9mtpa.
Cash costs rose slightly to $784/oz (March Qtr $753/oz). This is mainly attributable to reduced feed grade to the mill.
Cash costs per tonne milled continued to fall to $22.76 compared to $23.24 in the March quarter.
The gross project operating cash flow before working capital for the quarter was US$28.758M (March quarter was US$29.896M) from gross gold proceeds of sale of US$65.915M.
There were no Lost Time Injuries in the quarter with the site achieving 398 days without a lost time injury to result in an LTI Frequency rate of 0.
Mining and Geology
Mine production eased 7% to 2,370,565 BCM (March Qtr 2,547,823 BCM) to produce 1,599,837 tonnes of ore (March Qtr 1,611,639 tonnes) from Colorado, Binstar, HMB East and Main Vein pits. Main Vein and Colorado pits were the major sources of ore as Binstar pit, which has provided the majority of ore this year, will be completed in the September quarter.
The Lycopodium Optimisation Study to determine the options for upgrading plant capacity via stepped increases in capital expenditure nears completion with capital and operating estimates under final consultant review.
Exploration and Near Mine Resource Drilling Summary
Drilling this quarter was split between the Mining Lease area targeting resource infill and upgrade at Panique, Main Vein, Libra East, Libra West, Montana, HMBNW, and Colorado. Similar drilling was conducted at Blue Quartz and Old Lady prospects within EP -010-2010-V, and 3 exploration holes drilled to test a Cu - Au porphyry target at the Baleno Copper prospect. A total of 12,285m of reverse circulation ("RC"), 6,847m of diamond core, and 2,415m of RC / core tail drilling were completed.
The best results for the quarter were returned from Libra East where infill drilling has extended the mineralisation below the planned pit floor. HMBNW and Main Vein North Split holes also returned encouraging results.
Regional mapping and sampling continued this quarter completing coverage of the southern extent of EP-010-2010-V (EP10). Results received from this program have identified another anomalous drainage not associated with previously mapped veins or workings.
At the Baleno Cu / Au porphyry prospect, an IP survey was completed during the quarter and produced a number of chargeable anomalies. Drill testing commenced and minor copper mineralisation was noted in the core from two of the holes completed.
Drilling Statistics for June Quarter 2012
Locations RC RC / Diamond Tail Diamond
Holes Meters Holes …