KUNDANA

The amount of processed ore was less than expected as a result of an unplanned maintenance shutdown. For half of the September quarter, the Kundana plant was dedicated to treating ore from the East Kundana Joint Venture, with 41,915 tonnes at 7.3g/t gold treated on behalf of the other EKJV partners. During this period, ore produced from the Kundana mines was processed at Paddington. Underground mining produced 57,119 tonnes at 12.2 g/t gold. Ore was sourced 80% from Barkers and 20% from Strzelecki. Open pit mining produced 103,913 tonnes of ore grading 4.5g/t gold, which includes ore from Pope John and Raleigh North.

The mill treated a record 750,390 tonnes of ore containing 4.1g/t gold at 95% recovery, including treatment of low-grade stockpiles. Gold production was 95,383 ounces with cash costs of $362 per ounce and total costs of $533 per ounce. Kundana had a difficult year with access impeded to the Strzelecki orebody because of the failure of the decline and delays in implementation of the East Kundana Joint Venture.

Goldfields has reported a net profit of AUS$47.7 million for the year ending June 30, 2001, compared with a net profit of AUS$26.3 million for the same period the previous year. The increased earnings were attributed to improved performance of all the group members. Gold production for the year was 614,769 ounces, and sales revenue from mining activities for the year increased to AUS$340 million from AUS$301.7 million in the previous year, as a result of increased gold production and a higher average gold price achieved. (Auriongold Ltd)