Fourth Quarter Activities Report
Document date:
Wed 28 Jan 1998
Published:
Wed 28 Jan 1998 00:00:00
Document No:
153963
Document part:
A
Market Flag:
Y
Classification:
PLUTONIC RESOURCES LIMITED 1998-01-28 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ REPORT FOR THE QUARTER ENDED 31 DECEMBER 1997 Plutonic Resources Limited ("Plutonic") has interests in five gold mines and extensive exploration properties in Western Australia and additional exploration interests in other states. Plutonic also manages the base metals activities of its 62% owned listed subsidiary Lachlan Resources NL ("Lachlan"). This report principally relates to activities associated with Plutonic's direct mining and exploration interests during the quarter ended 31 December 1997. Activities of indirect interests are reported in summary form only, fuller reporting being provided in the Quarterly Report of Lachlan. HIGHLIGHTS CORPORATE * Plutonic and Homestake Mining Company announce on 22 December 1997 the proposed acquisition of Plutonic by Homestake to create one of the largest gold mining companies in the world. Plutonic board recommends the transaction to shareholders. OPERATIONS * Group mines produce 138,079 ounces in the December quarter at a cash operating cost of A$377 per ounce. * Group production for 1997 is 548,375 ounces, an increase of 98,564 ounces or 22% over the 1996 production of 449,811 ounces. * Cash operating costs for 1997 were A $373 per ounce, a year on year reduction of A$30 per ounce. * Plutonic Gold Mine produces a record annual production of 274,608 ounces (1996: 183,691 ounces) an increase of 90,917 ounces or 49% year on year. Cash operating costs decline to A$337 per ounce (1996: A$373 per ounce). * The Lawlers Gold Mine also has a record production year with 87,481 ounces produced at A$353 per ounce. An additional 14,441 ounces of gold from the Bellevue Gold Mine is produced through the Lawlers plant. * At Darlot/Centenary, in-fill drilling and stope planning continues on track for initial Centenary stope production in the second quarter 1998. * The Mt Morgans Gold Mine continues to operate on a cash positive basis at a cash cost of A$386 per ounce. Further non-cash stockpile drawdown costs of A$51 per ounce are also incurred. DEVELOPMENT * Development of the key Zone 124 orebody at the Plutonic Gold Mine progresses very well. * Underground diamond drilling of Area 54 at the southern end of Zone 124 con confirms the thickness, attitude, high grade and continuity of the lodes as previously interpreted from wider spaced drilling from the surface. * Underground development of Area 54, subsequent to the drilling, intersects high grade, thick, flat-lying and continuous lodes. The average face grade in the access decline is 23.2g/t Au (13.0g/t Au cut to 30 g/t Au) over a length of 25m. Ore drives from this access decline produce similar grades over development face heights of 5 to 6 metres. * At Centenary on-strike development for diamond drill access and stope development commences. Initial in-fill drilling has commenced. The 380m raise bored ventilation shaft is largely completed, with the final 70m to surface to be conventionally sunk during the first quarter 1998. * Development of the New Holland South underground project at Lawlers confirms the high grade, relatively flat lying nature of the deposit, as anticipated front surface drilling. EXPLORATION * Diamond drilling beneath Deposit 309 at Me Twin Hill Joint Venture property in northern Queensland returns a very high grade intersection of l7m @ 317 g/t Au (uncut) substantially increasing the potential of the deposit. MORE TO FOLLOW 1