Yalea mine

During the fourth quarter of 2009 a total of 1 434 metres development was completed and 112 439 tonnes of ore at a grade of 4.08g/t was hauled to surface, following a number of operating challenges experienced during the first half of the quarter. However, development rates are now increasing, with December month development of 618 metres and 56 634 ore tonnes representing project records.

The Yalea declines have now been advanced to a distance of 1 443 metres from surface and a vertical depth of 232 metres. During the quarter, management terminated the underground mining contract with the previous contractor and has assumed this responsibility within the company. The change has delivered immediate improvements as evidenced by the record tonnes in December.

During the fourth quarter, the main dam on 038 Level was commissioned and is now pumping directly to surface. The planned ventilation loop has been completed and the new main fan unit installed, resulting in improved underground working conditions. Overall development to date for the underground section is 10 267 metres.

Other significant developments during the quarter included the completion of a 760 millimetre diameter vent holing of 45 metres in length from the bottom of the P125 pit into the roof of 066L stope, the installation of the third underground belt (CV03) whilst 013L is currently being prepared for production.


Gara mine

The Gara underground mine budget and planning for 2010 have been completed. Negotiations are underway with suitable contractors to sink the declines and related developments, which is planned to start during the first half of 2010 with first ore expected by the end of the year. Work on the boxcut is moving ahead steadily and is expected to be completed during the first quarter of 2010.


LOULO 3 PROJECT

The revised Loulo 3 pit design and schedule have been completed, incorporating the increased mineral resource reported last quarter. A meeting was held with the mining contractor to review the fleet availability and extra equipment to be mobilised in order to meet the increase in volume to be mined from Loulo 3 during the year. Exploration drilling continues to delineate additional strike-length at Loulo 3 and infill RC drilling will be conducted during first quarter of 2010 to add additional resources.