During the quarter, we have continued to make good progress on the construction of the Tongon mine. The first primary jaw crusher has been positioned on its foundation with 85% of the surrounding steel work erected including chutes and bottom bins. The conveyor structure along the first milling line is now in place. Both the Run of Mine wall and the number one stockpile tunnel are nearing completion with only the roof remaining to complete on the stockpile tunnel.

Mill number one is assembled and positioned on its foundations complete with girth gear. The final run out and alignment testing of the girth gear is progressing. The electric motor and gear box have been placed into position on their respective foundations with alignment underway. Mill number two bearing foundations have also been installed, aligned and the second mill positioned on its foundations.

85% of the steel work in the CIL tank area is now installed along with all of the pump bases. The elution column steel work is also now erected. The pre-leach leach thickener tank is now in the final stage of completion (92%) along with the clarifier tank (95%) and the tails thickener tank currently at 70% complete. All of the pipe racks for the project are now erected except for reagent area.

The second stage of the Water Storage Dam wall has begun and is currently at 326 metre RL.  Topsoil stripping for both the Tailings Storage Facility (TSF) and return water dam has been completed. The key trench for the TSF wall is under construction as is the storm water cut off trench. Pre-stripping of the southern mining pit has commenced with over 70 000 bcms moved to date.

Good progress was made on the standby power station construction and equipment installation which remains on schedule. Eighteen generators are on site with twelve already positioned within the power station, of which ten are connected to the 11kV transformers. The power line corridor to connect the mine to the Côte d’Ivoire grid supply has been cleared between the mine and the town of Korhogo.

All the steel required for the first phase of the project has already been produced and the final 1 400 tonnes (for phase 2) are now being manufactured. All major equipment items are on site including mills, mill motors, girth gears, gearboxes, primary crushers, secondary and tertiary crushers, apron feeders, vibrating screens, agitators, interstage screens, kiln, and gold room equipment. In addition 95% of materials are on site including piping for the tailings lines, idlers and belting for the conveyors, plant piping and electrical cable. Eleven breakbulk vessels have already delivered 34 000 freight tonnes of equipment and materials for the mine through the Ivorian port of San Pedro to site requiring 1 660 truck trips between the port and the mine.  All the trucks are being provided and operated by Ivorian companies.

The mine operating management team is now in place and the operating workforce are currently being recruited and trained. Process plant personnel are undergoing operational training at our Morila mine. It is anticipated that the majority of our engineering semi-skilled personnel will be drawn from the current construction workforce, and selection and transfer of these personnel is under way. Some preliminary commissioning activities will commence next quarter in the lead up to production.

The project remains on track for first production early in Q4 2010.