Report for September 2003 Quarter
20 October 2003
- Continued strong coal production of 537,000 tonnes run-of-mine coal and washery yield of 94%.
- The longwall unit has been upgraded and production from coal panel SL4 commences today.
- Low gold production of 9,477 ounces due to a collapsed stope access drive, now remedied.
For Southland Coal:
For Gympie Eldorado Gold:
- Updated 5-year mine development plans for production 2-2.5 million tonnes per annum and now optimising longer-term scenarios for the underground resource and for the freehold property.
- Commenced final feasibility study for open-cut project on 2 million tonne resources on established leases.
- Completed independent reviews of identified target zones confirming the merit of greater exploration and updated 5-year mine development plans to optimise sequential access to some of these areas.
- Renewed gemstone alliance with Kabana with intention to expand the business as supply becomes available.
- Gympie Goldfield drilling re-commenced in August on a restricted basis to conserve cash.
- Drilling at North Inglewood intercepted 4 metres at 3.6g/t gold, located 60 to 100 metres below high-grade intercepts on the Inglewood Lode. This drillhole also intersected another major gold-bearing structure.
- Tenements were significantly expanded to the south and east in order to cover a recently recognised 20 kilometre extension to the potential strike length of the Goldfield. These new tenements also cover a metal-rich granite complex that is now interpreted as the likely source of the Gympie Goldfield mineralisation.
- Coal sales were a record 591,000 tonnes for the quarter with the demand outlook remaining strong.
- Gemstone marketing focused mainly on servicing core customers due to current supply restrictions.
- Loss after tax of $22.9 million for the 2002-03 financial year, due to problems remedied 6 months ago.
- 25%-owned regional gold explorer D'Aguilar Gold Limited listed on the Australian Stock Exchange.
- Cash on hand of $9.6 million at quarter's end.
- The planned debt refinancing can now be progressed, given the start-up of coal longwall panel SL4.
- Corporate opportunities being identified to expand the scale of each business unit.
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