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Activities Report for the Quarter Ended
31 December
2010
HIGHLIGHTS
- 37%
increase in gold production to 21,039oz (Sept 2010 Qtr:
15,300oz).
- Continued
downward trend in cash costs to A$877/oz (Sept 2010 Qtr: A$932/oz).
- Sales
revenue of A$27.2 million from gold sales of
19,570oz at an average received price of A$1,388/oz
� average cash operating margin of A$511/oz.
- Record
ore processing through the Three Mile Hill plant with 327,319 tonnes processed @ 2.2g/t Au.
- Record
mine production of 151,412 tonnes @ 3.56g/t Au
from the Tindals Underground Mine.
- Production
from The Mount Underground Mine and Tindals
Open Pits on track to commence in the June 2011 Quarter with ore
recovery commencing at The Mount from March 2011.
- Outstanding
results achieved from exploration work at the Treasure Island Project
with surface samples of 58.9g/t Au, 48.4g/t, 41.3g/t and 39.8g/t.
- At 31
December 2010, Focus had total cash and equivalents of $8.68 million.
Focus Minerals Limited (ASX: FML) is
pleased to report a record-breaking December Quarter that saw continued
growth in gold production, expansion of mine development and a further
reduction in cash operating costs, putting the Company on track to achieve
its targeted annualised production rate of 100,000
ounces of gold during calendar 2011.
Mine development continued at an
aggressive rate during the Quarter with record mine production of 151,412 tonnes at an average grade of 3.56g/t Au from the Tindals Underground Mine, including production of 60,300 tonnes at 4.8g/t for the month of December � well above
the targeted monthly average of approximately 45,000 tonnes
for 2011.
A record total of 327,319 tonnes of ore was processed through the Three Mile Hill
Processing Facility during the Quarter, which is a record over its 15+ year
history and equivalent to an annualised throughput
rate of 1.3 million tonnes.
Gold production increased by 37% to
21,039 ounces for the Quarter with the resulting cash operating cost of
A$877/oz continuing the positive trend of reducing
cash costs.
Exploration and development work at the Tindals Mining Centre continued at pace and the Company
remains on track for the planned commencement of open pit operations at Tindals in the June Quarter.
In preparation for the start of open pit
mining, the Company undertook grade control drilling,
resource/reserve extension drilling and approvals work for the open pit
operations with grade control returning outstanding results in many pending
pit areas including 3m @ 32.7g/t and 4m @ 23.4g/t.
The Mount Underground Mine, which represents
a wholly new area of production growth for the Company, also kicked off its
second phase in November, with a new box-cut being excavated and 185m of
decline development completed. The new underground development will enable
Focus to ramp-up to full-scale production from The Mount in the second half
of the year.
With the addition of The Mount and the
open pits at the Tindals Mining Centre, Focus
Minerals remains on track to substantially increase its production capacity
during the first half of 2011.
During the Quarter, Focus formally
acquired a direct 75% interest in the Lake Cowan tenement which hosts the
Treasure Island Project. Greenfields exploration at Treasure Island has
delivered some exceptional results including surface rock chip sampling
grades of 59g/t, 39g/t, and 41g/t over outcropping strikes of more than 200 metres in three closely linked areas.
These preliminary results highlight the
potential for an exciting new exploration opportunity for Focus Minerals
along the world class Boulder-Lefroy fault
system.
Capital investment and exploration
expenditure for the Quarter totalled $5.5 million,
comprising $2.2 million of mine capital development and $3.3 million of
exploration expenditure. This included $1.6 million relating to The Mount
development. At the end of the Quarter cash and bullion held by Focus totalled $8.68 million.
Campbell Baird
Chief Executive
Officer
Links
www.focusminerals.com.au
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