March 2001 Quarterly Report
1 January - 31 March 2001
09 April 2001
GYMPIE ELDORADO GOLD GROWING RAPIDLY
- Record production of 13,179 ozs and strong growth outlook. Monkland Mine
cash operating costs averaged $A288/oz for an operating margin of $A232/oz
($US114/oz) which is a 74% higher margin than for the previous corresponding
- Mine plans for the new large Stockwork 6A orebody completed, underpinning
the operation at an annual average 10g/t for 3 years or more. This is one of the
country's highest-grade gold mines.
- Recent exploration drill-intercepts include 7 metres at 21g/t and 12 metres
at 17.5 g/t gold on a newly discovered, large gold orebody within the Monkland
- Lewis Mine construction is on schedule and the large Rands Dyke Stockwork
has been discovered, including one drill intercept of 18 metres at 8.1g/t close
to the decline. Such increasing exploration success is profoundly transforming
the future scale of mine and mill production at Gympie.
SOUTHLAND COAL STARTS PRODUCTION AS COAL PRICES RISE
- Leading contractor Thiess Mining Pty Ltd was appointed to replace Colrok
after it went into voluntary administration on 10 January. Thiess is now
restarting production following a $4.5 million remediation program.
- While little coal was produced for the quarter during this remediation
program by Thiess, mine production over the next two years is planned at 3.2
million tonnes. Installed mine capacity exceeds 2 million tonnes per annum and
production rates will build up steadily.
- Customers continue to show strong support with most of the next 12 months
production already allocated at prices more than 20% higher than the past 12
months. The coal market is particularly strong with excess export demand from
Japan, Korea, India, Taiwan, Europe and also domestically.