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ST BARBARA LIMITED Fund Information / Factsheet 2006
65749_rns_2006-08-06_142b9f6f-0421-4a6d-bc80-39f4db1164f8.pdf
Fund Information / Factsheet
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St Barbara Limited ACN 009 165 066 1205 Hay Street, West Perth WA6005 Telephone +61 8 9476 5555 Facsimile -61 8 9476 5500 Email [email protected] Website www.stbarbara.com.au
ASX Shareholders Report
Gwalia Deeps & Marvel Loch Development Progress Report
Gwalia Deeps at Leonora and the Marvel Loch mine at Southern Cross have been identified by the Company as opportunities to develop into long life, low cost, high margin operations.
Gwalia Deeps
Recently announced Probable Reserves at Gwalia Deeps are 3.14Mt at 9.0g/t gold for 885,000oz (based on a gold price of A$650/oz) and are located between 1,100m and 1,500 metres below surface (mbs).
Feasibility Study work to date indicates that conversion of Inferred Resources adjoining these Reserves could significantly extend the currently estimated mine life of approximately 6 years and reduce the cost of all reserve ounces.
To achieve this objective the Company has committed to:
- additional drilling expenditure of A$7M to be completed by December 2006; and
- further capital expenditure of A$16M to continue the Hoover Decline to February 2007, when it is scheduled to be at 750mbs.
The Hoover Decline is scheduled to reach the top of the Deeps at 1,100mbs in the March 2008 Quarter. The Feasibility Study is scheduled to be completed in January 2007.
Marvel Loch
The Marvel Loch mine has the potential to be developed into the cornerstone of the Southern Cross Operations. Current Marvel Loch mine Reserves of 1.4Mt at 4.2g/t gold for 190,000oz (based on a gold price of A$650/oz) represent an approximate 3 year mine life. These reserves extend to a vertical depth of 500mbs. Conversion of Resources to Reserves below 500m is in progress to at least 650mbs with the objective of extending the mine life beyond 5 years.
The cash cost of production for the Marvel Loch mine for the 2007 financial year is forecast at A$425/oz.
Capital expenditure of A$27M at Southern Cross Operations for the 2007 financial year has been allocated. This includes drilling expenditure of A$4M, A$4M on process plant improvements and A$17M on underground development and associated infrastructure. This underground development will access current Reserves and provide the infrastructure for production increases in the future.
Exploration at the Southern Cross Operations is focusing on conversion of open pit Resources to Reserves, to supplement Marvel Loch underground production and extend the current 3 year mine plan.
Eduard Eshuys Managing Director & CEO
7 August 2006