EXPLORATION discoveries and a strong reinvestment program have augured well for gold miner Hill 50 Gold NL which posted a net profit after tax of $10.77 million for the last fiscal year.
Hill 50 Gold chairman Peter Newton said the year had been one of consolidation and growth at the company’s Mt Magnet mining operations.
Gold production during the period rose by 32 per cent over the previous year to 148,560 ounces, with cash operating costs averaging $310 per ounce. Gold sales averaged $475/oz allowing Mt Magnet operations to book a cash operating surplus of $26.3 million. The net profit equated to basic earnings per share of 9.83 cents.
Mr Newton said the company continued the strong reinvestment programs that have created the base for long-term sustainable production.
“Exploration was intensified during the year with substantive success in both the Hill 50 and Star deep drilling, with discoveries of open pittable ores at Bartus South, Titan and Milky Way,” he said.
The geological and database systems have been upgraded for the next millennium by the reconstruction of all data collected from the goldfield over the last 100 years into a single consistent 3D-coordinated database.
Mr Newton said the integration of the varying technologies in 3D has outlined a “treasure chest of targets” that will ensure continued exploration success and growth on the Mt Magnet goldfield for many years.
Significant growth in its gold inventory has resulted in a total identified mineral resources increasing to 5.1 million ounces, an increase of 95 per cent since June last year and total mining reserves increasing to 2.2 million ounces, a growth of 71 per cent.
Despite the ‘negative sentiment to gold equities’, the growth in resources and reserves has justified an upgrade in the Checkers treatment plant that will optimise the mining operations and give the company the means to increase gold production up to 250,000oz per annum.
