Perseverance Deposit
Production commenced at the high-grade Perseverance Project in April 2008 after the completion of a positive Feasibility Study in December 2007. Perseverance was initially forecast to yield production of 100,000 ounces over 22 months but with continuing exploration and a strong gold price this figure will increase significantly.
Ore from Perseverance is currently treated through a third party mill, the nearby Greenfields gold plant, however will be treated at the Three Mile Hill plant later this year upon its recommissioning.
Three Mile Hill Refurbishment
The refurbishment of the Company’s 100%-owned, 1.2Mtpa Three Mile Hill treatment plant will underpin Focus’ expansion plans, giving the Company much greater flexibility in combination with the arrangements currently in place with Higginsville Mining’s nearby Greenfields processing plant.
With recent upgrades to the Company’s overall resource base, including an increase in Probable Reserves at both the Perseverance and Countess Deposits, an increase in processing capacity is required in order to sustain greater levels of production expected in the near future.
The re-commissioning of the Three Mile Hill plant is will provide an efficient and cost-effective means of ramping up production as new deposits are brought into production.
Exploration
Focus has a strong commitment to exploration within the Coolgardie region; the Company’s confidence in the region is based on the fact that there has been very little historical drilling below 200m.
Focus believes that a multitude of high-grade deposits remain undiscovered within the project area which could provide the high-grade ore required to ensure that production can be sustained at the targeted +100,000 per annum level over the long term.
Coolgardie Development
Other key deposits at Coolgardie will be progressively developed with ore treated at Three Mile Hill; commencing with the broader Tindals Mining Centre surrounding the Perseverance deposit. Work is continuing at Tindals at the Countess, Empress and Cyanide (Tindals East) deposits, in order to fast-track further delineation and development of the broader area.
Focus’ immediate plans are based around the optimisation of current production operations at Coolgardie to ensure operating margins remain high. Initially, this will mean that priority will be given to the development of additional resources at the producing Perseverance and Countess Deposits.
In the medium term, Focus will step-up exploration and pre-feasibility studies at other nearby high-grade deposits including Empress, The Mount and Cyanide These deposits are targeted for production in 2010