Company Reports
December Quarterly Activities Report
QUARTERLY ACTIVITIES REPORT: DECEMBER 2011 (Download here)
CORPORATE
- Group gold production for the Quarter was 34,211oz, inclusive of an attributable 12,779oz from the Laverton operations.
- Coolgardie delivered revenue of A$33.3M from gold sales of 19,922oz at an average price of A$1,670/oz.
- Laverton delivered gross sales revenue of $26.3M from sales of 15,666oz produced in the December Quarter at an average price of $1,676/oz.
- Capital investment and exploration expenditure at Coolgardie for the Quarter totalled $10.48M, comprising $6.23M of mine capital development and $4.25M of exploration expenditure.
- At the end of the Quarter, Focus had cash and bullion equivalents of $14.3M and remains hedge free.
OPERATIONS
Coolgardie, Western Australia
- Coolgardie Operations produced 21,432oz at a cash cost of $1,076/oz compared to a cash cost of $977/oz in the previous Quarter. Operating costs were adversely affected by an unscheduled mill reline and shutdown costs incurred during December.
- Second best Quarter on record mining 231,878t @ 3.15g/t for 23,463oz.
- The Mount delivered its best Quarter since entering production mining 6,047oz, a 29% increase on the September Quarter.
- The commencement of development of the Big Blow open pit saw the Tindals Open Pits deliver 3,967oz, despite the impact of unseasonal rain which impacted 15 days production during October and November.
- The Tindals underground mine delivered 13,449oz for the Quarter with the month of December being the strongest in the 2011 Calendar Year for ounces produced.
- 13,859m of infill and resource/reserve extension diamond drilling was completed at Tindals Underground with 5,015m drilled at surface targets at Tindals.
- The Three Mile Hill mill delivered another solid Quarter with 298,876t processed at an average gold recovery of 95.4%.
- During the Quarter, Focus commenced a major capital works program to expand the tailings dam at Three Mile Hill.
Laverton
- The Laverton operations mined 445,120t @ 2.53g/t for gold in ore of 36,229oz in the December Quarter.
- A total of 411,012t @ 1.32g/t was processed over the 32 day campaign under the Ore Purchasing Agreement at Barrick Granny Smith (a daily gold production of 490oz, equivalent to 98,000ozpa based on Crescent’s allocated 200 processing days per calendar year).
- This saw the Laverton operations produce a total of 15,666oz of gold with 12,779oz attributable to Focus.
- Crescent achieved an average gold sale price of A$1,676/oz to deliver gross sales revenue of $26.3m.
- Cash operating costs for the Quarter were $1,467/oz, a reduction of $129 on the September Quarter’s costs of $1,596/oz.
- Commenced pre-strip and development of the Apollo pits, where Crescent has an Ore Reserve of 1.06Mt @ 1.9g/t for 64,000oz.
- Stockpiled 353,800t @ 1.84g/t at the ROM pad at Granny Smith by the end of the Quarter in preparation for Campaign 10. The 50 day campaign commenced on 8 January 2012.
- Development studies focused on the Apollo, Eclipse, Calypso, Aurora, and Lord Byron deposits with 8,529m of RC and 780m of diamond drilling.
EXPLORATION
Coolgardie
- Drilling in the Undaunted area confirmed depth extensions with best intersections including: 11m @ 5.4g/t; 14m @ 4.8g/t; 4m @ 6.5g/t; 5m @ 6.0g/t; 8m @ 4.8g/t and 2m @ 15.8g/t.
- Drilling at the Norris Project, 15km southwest of Coolgardie identified at least two sub parallel mineralised zones.
- Extensive target generation exercise undertaken across the northern half of the Coolgardie tenement package identifying numerous targets for which Heritage surveys were completed for many of the targets.
Treasure Island
- Preliminary results from aircore programme identified second gold bearing system running through the project.
- In fill reconnaissance drilling commenced late in the Quarter with a second aircore rig on site to test a palaeochannel system to the north of the island.
Laverton
- Regional geochemistry sampling continued on selected tenements and areas plus a small drilling programme located on the southern extensions of the Chatterbox Shear system.
September Quarterly Activities Report
FOCUS MINERALS LIMITED: ACTIVITIES REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2011
HIGHLIGHTS
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Production Highlights
Focus Minerals Ltd (ASX: FML) is now one of Australia’s leading gold producers following its successful off-market takeover of Crescent Gold.
Focus produced 35,647oz of gold for the September Quarter, inclusive of an attributable 13,739oz from its Laverton operations and a record 21,908oz from its Coolgardie operations where it is ramping up two new mines.
Record Production at Coolgardie
Focus achieved sales revenue from its Coolgardie operations of $34.2 million from gold sales of 21,582oz at an average price of $1,583/oz.
The Coolgardie operations mined a record 249,481t @ 3.03g/t for gold in ore of 24,319oz, a 41% increase on the preceding 12 months’ Quarterly average.
Cash operating costs were $944/oz. Capital investment and exploration expenditure for the Quarter totalled $11.74 million, comprising $8.25 million of mine capital development and $3.49 million of exploration expenditure.
Laverton Met Market Guidance
Production at the Crescent Gold Laverton Operations met market guidance for the September Quarter producing a total of 21,915oz of gold with 13,739oz attributable to Focus.
Crescent achieved an average gold sale price of A$1,660/oz to deliver Net Revenue of $36.6m.
A total of 504,288t @ 1.5g/t was processed over the 39 day campaign under the Ore Purchasing Agreement at Barrick Granny Smith (BGS). This saw a record daily gold production of 559oz, equivalent to 112,000ozpa based on 200 processing days per calendar year.
2012 Guidance
With the successful completion of the Crescent takeover, and the continual ramp-up of operations at both Coolgardie and Laverton, Focus is targeting production of +200,000oz of gold in calendar 2012 from four mines, making Focus one of Australia’s leading gold producers.
Commentary
“The September Quarter was clearly transformational for Focus Minerals,” said Focus Chief Executive Campbell Baird. “We have significantly increased the scale of the business and have set the stage for strong production growth in 2012.
“We have delivered our first full Quarter’s production from our two new mines at Coolgardie and have now increased our 2012 production targets significantly through the successful acquisition of Crescent Gold.
“The Crescent acquisition represents significant value for shareholders. It’s been achieved for just $59m in scrip and the diversion of $11m in funds as loans to Crescent to support it through a period of critical production turnaround.
“The results are already there for all to see with the Crescent operations meeting market guidance for the Quarter and, importantly, development across the Laverton operations continuing apace.
“The acquisition was considered by the Board to be a company making event which would build long-term value for shareholders by significantly increasing Focus’ projected annualised production to +200,000oz, doubling Mineralised Resources and tripling Ore Reserves.
“The decision was therefore taken to divert some capital development funds from our newly opened mines at Coolgardie into securing the Crescent acquisition. This has meant that whilst production at Coolgardie was at record levels, the ramp up of the new mines in this Quarter was not accelerated at full pace. We therefore expect the Coolgardie operations to produce around 85,000oz in this calendar year and move to a production run rate of 100,000oz in the December Quarter.”
Financials
At the end of the Quarter, Focus had cash and bullion equivalents of $13.9m after extending loans of $11m to Crescent operations and $3m in takeover costs.
Focus’ attributable share of Crescent’s available cash at the end of the period was $1.6m which is net of Focus’ share of cash backed bonds of $7.4m.
Focus was included in the S&P/ASX 300 Index during the Quarter.
June Quarterly Report
Download Full Quarterly Report here
FOCUS MINERALS LIMITED: ACTIVITIES REPORT FOR THE QUARTER ENDED JUNE 30, 2011
HIGHLIGHTS
- Made takeover offer for 100% of Crescent Gold Limited, which will enable Focus to become a Top 5 Australian gold producer
- Completed circa $40 million equity raising to accelerate key production and exploration programs
- Met production guidance, producing 18,102oz of gold
- Drilling confirmed discovery of new gold camp at the Company’s 100% owned Treasure Island Gold Project
- Achieved significant development and operating milestones, including commencing ore production at new Tindals Mining Centre Open Pit operations and stoping at The Mount
- Delivered strong production from established Tindals Mining Centre underground operations – 160,056t @ 3.17g/t for 16,315oz
- Accelerated exploration program in-line with plans to have eight rigs operating by the start of the September Quarter
- Sales revenue of A$26.2 million from gold sales of 18,443oz at an average price of A$1,419/oz
- Strong balance sheet with total cash and equivalents of $32.7 million
Focus Minerals Ltd (ASX: FML), an Australian gold producer, delivered a number of major operational milestones during the June Quarter, including opening a second new mining operation and commencing a significant exploration program across four key project areas, whilst meeting its production guidance, producing 18,102oz of gold for the Quarter.
At the end of the June Quarter, the Company entered into a Bid Implementation Agreement with Crescent Gold to make a takeover offer for 100% of Crescent’s shares in a transaction that will make Focus one of Australia’s Top 5 gold producers with outstanding growth potential across two major Western Australian mining regions. This transaction has been progressing well, and Focus has now received acceptances totalling 45.77%.
At the start of the Quarter, Focus completed a $39.3 million equity raising to accelerate its key production and exploration programs.
Operationally, significant achievements during the Quarter included:
- The opening of the Tindals Mining Centre Open Pit operations, Focus’ second new mining operation this year. This saw the first ore being processed from the Empress Open Pit (17,000t @ 1.67g/t) and commencement of ore development at the Dreadnought Open Pit. Approvals were also received at the end of the month to commence development at Big Blow, the third pit at the Open Pit operations;
- Commencement of long-hole stoping at The Mount. This saw Focus produce a total of 21,469t @ 2.81g/t for the Quarter from The Mount underground operation, which Focus opened in the March 2011 Quarter; and
- A record 160,056t @ 3.17g/t of ore mined from the Company’s established Tindals Mining Centre Underground operations.
On the exploration front, Focus has accelerated its exploration program in-line with plans to have eight rigs operating by the start of the September Quarter. This has seen the commencement of exploration at two target areas in the Greater Coolgardie region – the Norris Project Area and the Three Mile Hill Project Area – plus the expansion of drilling at the Tindals Mining Centre and The Mount.
Importantly, Focus’ inaugural drilling program at the Treasure Island Gold Project at Lake Cowan has confirmed that high-grade mineralised veins continue at depth confirming the discovery of a new gold camp. This marks the start of an exciting exploration phase for Focus.
The results over 1km of strike have delivered exceptionally high-grade intercepts with new and existing mineralised veins appearing to be open in all directions, and Focus is now stepping out from the first holes and looking at other prospects across the lake with the mobilisation of a lake aircore rig that has commenced a +10,000 metre program along a 6km strike of favourable geology.
Focus achieved sales revenue of A$26.2 million from gold sales of 18,443oz at an average price of A$1,419/oz and delivered cash costs at A$981/oz. Cash costs are slightly higher than the average of A$870 achieved in the previous two Quarters, as they include the impact of operational ramp-ups, higher than usual mine development costs, and a mill reline.
Focus closed the Quarter with a strong balance sheet with total cash and equivalents of $32.7m.
Focus March Quarterly Report
FOCUS MINERALS LIMITED: ACTIVITIES REPORT FOR THE QUARTER ENDED MARCH 31, 2011
HIGHLIGHTS
- On schedule to grow production to 100,000ozpa in calendar 2011 and 130,000ozpa in calendar 2012, enabling the Company to capitalise on high gold prices
- Second operating centre, The Mount underground mine, commenced ore production during the Quarter
- Focus’ third operating centre, the Tindals Open Pits, progressed rapidly and set to start production in June Quarter
- Delivered a global resource growth of 10%. Now 26.5Mt @ 2.6g/t for 2.3Moz
- Global reserves and stocks at 3.5Mt @ 2.2g/t for 247,000oz
- Acquisition of 100% of Treasure Island Gold Project at Lake Cowan with option to acquire a further 110km2 tenement
- Commenced preliminary 20-hole orientation drilling program at Treasure Island
- Maintained cash costs at A$878/oz
- Produced 18,391oz of gold with 286,251 tonnes processed at 2.14g/t through Three Mile Hill plant
- Sales revenue of A$27.5 million from gold sales of 19,942oz at an average price of A$1378/oz
- Total cash and equivalents of $8.6 million at March 31, 2011
Focus Minerals Limited (ASX: FML) is pleased to report that it has had a highly successful March Quarter which has set up the Company to expand production to 130,000oz by 2012.
Significant achievements during the Quarter included the start of mining at Focus’ second production centre, The Mount, located 85km south of the Company’s Coolgardie operations in Western Australia. Focus has a target of 1,500 ounces per vertical metre from The Mount with extraction of 40 vertical metres a year to support annualised production of 40,000 to 60,000 ounces.
At the same time, substantial progress was made in the push to develop a third production centre, the Tindals Mining Centre Open Pits at Coolgardie. Development of these pits is now underway, with production set to start in the June Quarter. They are forecast to contribute an additional 30,000 ounces a year to Focus’ overall production.
Along with Focus’ existing Tindals underground mines, these new developments are expected to see Focus increase production to 100,000 ounces in calendar 2011 and to 130,000 ounces in 2012.
The growth strategy is being accelerated to ensure that Focus can take full advantage of the current high gold price. To help achieve this, Focus completed a circa $40m equity raising subsequent to the end of the Quarter, with heavy institutional demand reflecting strong support for the Company’s plan and growth outlook.
In parallel to the strong focus on new mine development, exploration and development work continued at the Tindals Mining Centre with an overall increase in resources of 20 per cent across both the Underground operations and Open Pits. This has seen Focus’ Global resource figure grow 10 per cent to 26.5Mt @ 2.6g/t for 2.3M ounces. Global reserves are 3.5Mt @ 2.2g/t for 247,000 ounces.
Mine development at the Tindals Mining Centre underground operation continued at a steady rate during the Quarter with on-target production of 132,382 tonnes at an average grade of 3.37g/t Au.
Despite a foreshadowed five-day shutdown, 286,251 tonnes of ore was processed through the Three Mile Hill plant with 18,391 ounces of gold produced at a steady cash operating cost of A$878/oz.
Importantly, Focus also commenced a preliminary 20-hole orientation drilling program at the Treasure Island Gold Project at Lake Cowan in WA which is expected to yield its first results in May.
During the Quarter, Focus agreed to acquire the remaining 25 per cent of the Treasure Island Gold Project, giving it 100 per cent ownership of the highly prospective tenement. It was also granted an option to acquire an adjoining tenement totalling some 110km2 immediately to the east.
Capital investment and exploration expenditure for the Quarter totalled $8.6 million, comprising $3 million of mine capital development and $5.6 million of exploration expenditure. This included $3.7 million relating to The Mount development. At the end of the Quarter cash and bullion held by Focus totalled $8.61 million.
Quarterly Report – December 2010
- 37% increase in gold production to 21,039oz (Sept 2010 Qtr: 15,300oz).
- Continued downward trend in cash costs to A$877/oz (Sept 2010 Qtr: A$932/oz).
- Sales revenue of A$27.2 million from gold sales of 19,570oz at an average received price of A$1,388/oz – average cash operating margin of A$511/oz.
- Record ore processing through the Three Mile Hill plant with 327,319 tonnes processed @ 2.2g/t Au.
- Record mine production of 151,412 tonnes @ 3.56g/t Au from the Tindals Underground Mine.
- Production from The Mount Underground Mine and Tindals Open Pits on track to commence in the June 2011 Quarter with ore recovery commencing at The Mount from March 2011.
- Outstanding results achieved from exploration work at the Treasure Island Project with surface samples of 58.9g/t Au, 48.4g/t, 41.3g/t and 39.8g/t.
- At 31 December 2010, Focus had total cash and equivalents of $8.68 million.
Download full announcement – Quarterly Report – December 2010