Focus Minerals (ASX:FML) Quarterly Activities Report to 31 March 2010
Perth, May 3, 2010 AEST (ABN Newswire) - Focus Minerals (
ASX:FML) Quarterly Activities Report to 31 March 2010 and the following summary highlights the full report.
Record 27,793 ounces produced
Focus' Three Mill Gold Plant officially commenced operation on the 24th December 2009. The first significant gold pour occurred on the 13th January 2010. With the start up of the mill, Focus produced a record 27,793 ounces for the Quarter. The March 2010 Quarter was exceptionally successful for Focus and has laid the foundation for the Company to reach forecast gold production of 80,000ounces for the 2010 calendar year.
Pipeline of organic growth
The successful refurbishment and commissioning of the Three Mile Hill Gold Plant cannot be overstated in its importance to the future growth of Focus Minerals. Focus now has the flexibility to begin developing and unlocking the pipeline of its 1.9 million ounce resource base. This guaranteed and secure milling capacity has already had benefits with the fast tracking of development at The Mount project during the March Quarter, creating a second operational centre at Widgiemooltha, 80km south of Coolgardie.
Fast tracking the Mount to full Production
The Mount has advanced from an early exploration project to a potential 60,000 ounce per annum stand alone operation.
Exceptional development grades continued to be delivered over two levels with over 7,200 tonnes of ore at 9.2 g/t delivered to Three Mile Hill and in March, Focus announced a maiden Probable Reserve of 69,000 tonnes at 8.6 g/t Au. The Mount is considered a potential company making deposit and ongoing exploration and development work will determine the best scenarios for its anticipated acceleration into full-scale production.
Decline & level development at Tindals
Since commencing decline development at the Tindals Mining Centre in late 2009, Focus has significantly increased the rate of its capital and level development. During the March Quarter, over 632 metres of decline and lateral development was completed in the Empress and Perseverance Declines and over 705 metres of ore level development was completed in Empress, Countess, Perseverance and Tindals.
Strong Exploration Push
The Company continued its strong exploration push with over 12,600 metres of diamond and RC drilling undertaken during the Quarter, along with the updating and expansion of six Resources and five Reserves.
Reserves Expand to 186,600 ounces
Since October 2009, Focus has added over 90,000 ounces into its Reserves in addition to ongoing depletion and during the March Quarter was able to expand its Reserves and stocks inventory, net of depletions to 186,600 ounces.
Mill Ramp up successful
Commissioning and ramp-up of Three Mile Hill (TMH) has run smoothly and was nearing completion by the end of the March Quarter. With mill availability of 90% recorded for the Quarter, recoveries improved from 83% in January to an average of 90% for the Quarter and throughput rates steadily increasing from 110t/hr in January to a 128t/hr in March, Three Mile Hill is expected to achieve full 1.2 Mtpa per annum capacity by May 2010.
Cash costs satisfactory A$820 ounce
Given the high levels of activity for the March Quarter, cash costs were a satisfactory A$820 per ounce (year to date cash costs are A$725 per ounce). From the sale of 25,835 ounces, record revenue of $31.8m was generated at an average gold price of A$1,230/oz.
Solid foundation for growth
Overall, the March 2010 Quarter was exceptionally successful on all fronts and has laid a very solid foundation not only for the remainder of the 2010 Financial Year, but also for 2011 and beyond.
For the Full Report, please view at:
http://www.abnnewswire.net/media/en/docs/62767-ASX-FML-489318.pdf
About Focus Minerals Ltd
With over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.
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