Operations

Red October open cut is situated on the margins of Lake Carey approximately 120km North East of the Carosue Dam processing plant and 15km South of the Sunrise Dam operations. Scoping studies have identified potential for an underground operation. Red October currently has an u/g resource of around 137koz, and is still open down dip and along strike. Previous open cut mining by Sons of Gwalia at Red October in 1999, produced 539kt @ 6.5g/t reconciled grade, which reflects the high grade nature of this deposit.

Board approval was obtained in 2010 for a preliminary development of Red October. This development will take the form of a trial mining program. This program aims to confirm geological interpretations and designs, provide bulk samples to confirm metallurgical response through the Carosue Dam plant, and carry out an extensive underground diamond drilling campaign. All of these would be achieved through the cutting of a portal, sinking a decline down two levels and stoping out bulk ore samples, along with the development of a significant hanging wall drill drive.

Development work at Red October commenced late in 2010; with dewatering of the existing pit progressing ahead of schedule. Work is complete on construction of stage 1 of the 100 man accommodation village, as well as advanced plans for the Butcher Well to Safari Bore haul road, which will connect Red October into the Carosue Dam haul road network.

Dewatering of Red October Pit onto Lake Carey

Red October Accommodation Village

Red October pit currently being dewatered