Good progress was made during the quarter in completing the phase 1 process plant circuits. This enabled the process team to hot commission and mill first ore in the latter half of September 2010.  Unit processes from the Run of Mill (ROM) pad, oxide crushing circuit, conveying, Mill No 1 circuit, Carbon in Leach (CIL), and tailings disposal and Tailings Storage Facilities (TSF) have been commissioned and brought on line.  Ramp-up to full production for one mill is in progress.  The second mill circuit is scheduled to be brought on line in November 2010.  Other key phase 1 circuits anticipated to be completed by the end of November are the Elution, Gold Room and related facilities, reagent make-up and dosage circuits and tailings return water pipeline. 

The Phase 2 sulphide treatment related process circuits are scheduled for completion in the first quarter of 2011, as per plan.  This includes the hard rock secondary and tertiary crusher circuit, flash flotation and flotation concentrate treatment facilities. 

In general the critical focus remains in bringing the second ore stream, consisting of the second oxide crushing circuit, conveyor belt and No 2 mill circuit, on line as soon as possible.  This will allow the tonnage throughput to be ramped up to design levels. Construction and commissioning activities are on track with the mine having poured first gold on 8 November 2010. 

The Powerhouse is now operational.  Tongon mine’s total electrical power requirements are currently being supplied from the high-speed diesel generators in the Powerhouse, prior to the completion of the connection to the Côte d’Ivoire grid.  The grid power installation is expected to be completed in February 2011, as per plan.  The power line corridor has been completed from Tongon mine to Korhogo.  Erection of the pylons is progressing well with 152 out of 174 pylons completed. Minor civil work is outstanding on the Korhogo substation.  

From an operational perspective, the mine team is currently at 90% of its planned complement.  The operating workforce is on shift and receiving on-the-job training from skilled process operators and trainers.  Mining operations have now progressed to the full 4-shift cycle.  Sufficient ore tonnes to sustain the plant ramp up in tonnage have already been stockpiled at the ROM pad.

As at 30 September 2010, 2 931kbcm had been mined with a total of 483kt of oxide ore at a grade of 2.83g/t currently on the ROM stockpile and available to the process plant.  

Five lost time injuries reported this quarter were a result of motor bike injuries which occurred outside the mine perimeter. The mine is preparing for OHSAS certification in 2012.

Following the signing of the mining licence/decree by the President of Côte d’Ivoire in July 2010, the mining convention governing the fiscal parameters for the development and operation of the mine has also subsequently been signed by the Ministry of Finance and Ministry of Mines.

Presidential elections were held on 31 October but with none of the candidates securing an absolute majority, a second round will take place towards the end of November.  The run-up to the elections was a significant distraction to the largely Ivorian workforce but they were still able to bring the mine into production on schedule.