Focus Minerals – June 2010 Quarterly Activities Report
Thursday, July 29th, 2010
Focus has completed its second full year of production, generating a record 62,300 ounces at a total cash cost of A$792/oz in the year to June 30, 2010. This is a 52% increase on the previous year’s production of 41,400 ounces.
Production during the June Quarter, which comprised just 52 milling days, totalled 164,919 tonnes @ 2.5g/t for 12,660 ounces. This excludes 33 days of toll milling and a six-day maintenance shutdown.
Focus’ reserves continue to grow, with open pit reserves now at 1,490,000 tonnes @ 1.8g/t and underground reserves growing to 954,000 tonnes @ 3.9g/t for a total combined position of 2,483,000 tonnes for 207,900 ounces in reserves and stocks.
Focus reached a key milestone in its development during the quarter, with its resource base climbing above two million ounces for the first time.
Highlights of the resource growth include an increase of the underground resources at the Tindals Mining Centre to 2.04Mt @ 4.9g/t for 324,000oz following an 80% increase in the Cyanide resource to 117,800oz @ 5.5g/t.
An updated resource for the Empress Alicia Deposit now stands at 849,000t @ 2.00g/t for 54,500 ounces, including an indicated resource of 620,000t @ 2g/t for approximately 39,700 ounces and an inferred resource of 229,000t @ 2g/t for approximately 14,700 ounces.
Promising drilling results from new electromagnetic targets point to a new discovery north of Perseverance (Tindals), with hits including:
4.6m @ 5.9g/t Au
5.2m @ 3.6g/t Au
4.2m @ 3.6g/t Au
A large modelling and targeting exercise in the well endowed Lindsays / Bayleys area was completed and has revealed potential for numerous large, undiscovered ore bodies within Focus’s Coolgardie land holding. Initial drilling in the area has commenced with immediate exciting results, including:
3.0m @ 7.02g/t Au
2.1m @ 6.65g/t Au
5.0m @ 4.76g/t Au
10.6m @ 2.69g/t Au
17m @ 2.56g/t Au
During the quarter, Focus acquired a 75% interest in the Lake Cowan gold-copper project (Treasure Island), south of Kambalda. This sits on the southern extension of the famous Boulder-Lefroy fault system.
Initial sampling from Treasure Island has returned outstanding copper grades including 8.53% Cu, 2.87% Cu and 1.51% Cu as well as anomalous gold, silver and nickel results.
At the end of the quarter Focus had $10.2 million cash and bullion on hand.