Production and operations

Gold produced in the quarter ended September 30, 2009 was 37,458 oz (quarter ended September 30, 2008 – 46,078 ounces) and for the nine months ended September 30, 2009 was 122,807 ounces.

This figure represents a reduction from 2008’s 144,652 ounces for the first three quarters. This results from management’s decision to high-grade the production from specific pits to ensure cash flows could be maintained in 2008. The plant refurbishment and replacement of bearings saw production in October 2009 at 18,000 ounces, which is well up from the 12,500 ounces of each of the previous three months. October’s high production is a direct result of work done to improve plant availability, which was completed in September. All four mills became operational in October.

Production remained steady throughout November and December 2009 as well, with a total recovery of 56,000 ounces in the last quarter. The variation in grade and ounces during this quarter relates to mining equipment availability and the utilization of lower-grade stockpiles during periods of open-pit equipment overhauls. The average head grade during the period was 1.39 g/t.

All plant and equipment overhauls in the period were scheduled as part of the rectification program. For the month of January, 2010, this trend of improving throughput has continued.

Three further major plant shutdowns are scheduled in 2010, following which the plant is anticipated to be fully refurbished and the mobile equipment overhauls and mid-life rebuilds will continue through 2010.