Highlights
Mt Morgans Operations
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Record production of 8,201 ounces (oz) of contained gold (Au).
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Record production in July of 3,298 contained oz Au.
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Average cash cost of $835/oz Au produced.
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Commenced delivery of crushed ore to Barrick’s Granny Smith Plant.
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Confirmed open pit mining potential of Ramornie North and Sarah.
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Increased target open pit gold inventory by 48,000 oz.
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First steps in achieving target of 100,000 oz Au pa within 5 years.
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Completed open pit mining of Craic gold mine.
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Commenced underground operations at Craic gold mine.
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Advanced Transvaal underground gold mine for re-opening.
Indee Gold Project
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Completed 2010 NWME funded exploration program.
Going Forward
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Key focus for the December quarter will be the achievement of:
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Transition to underground mining at the Craic gold mine.
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Rehabilitation of the access portals to Transvaal gold mine.
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Commence open pit mining of Ramornie North and Sarah gold mines.
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Finalise open pit mining potential at Millionaires.
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Drill testing of high grade zones at Morgans North gold mine.
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Evaluation of the open pit cutback potential of Mt Marven and Recreation gold mines.
Outlook
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Production for the coming quarter is expected to be 8,000 to 10,000 oz Au.
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Total cash costs expected to be A$925-975/oz Au due to the transition to underground mining and opening new open pits.
18 October, 2010, Melbourne: Range River Gold Ltd (ASX:RNG) reports that the Mt Morgans operation produced 8,201 oz Au in the September quarter.
Mined ore production for the quarter was a record 54,358 tonne @ 4.69 grams per tonne (g/t) Au for 8,201 oz Au.
Preliminary cash costs were A$835/oz Au.
Managing Director Rick Watsford commented:
The team at Mt Morgans continued to make excellent progress during the September quarter and achieved the production guidance for the period.
The development program for new open pit resources moved ahead with excellent outcomes. As a result, open pit mining of the Range River identified Ramornie North and Sarah deposits is expected to commence in the December quarter.
The recent commencement of underground development at the Craic gold mine was a milestone event. The production plan for Mt Morgans is underpinned by underground mining. Initially underground mining is planned for the Craic gold mine to be followed by re-opening of the Transvaal underground gold mine and later the Westralia underground gold mine.
In the coming quarter the focus is very clearly on the successful transition to underground mining at Craic, reopening Transvaal and bringing into the plan new open pit resources. In addition the development plan will focus on evaluation of cutbacks of other existing mines and further exploration at Morgans North.
At the Indee Gold project, the 2010 drill program was completed.
R M S Watsford
Managing Director & CEO
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