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Mine production for the year totalled 502,034 
tonnes of ore at a reconciled grade of 4.17 g/t 
comprising 356,009 tonnes at 5.26 g/t of high 
grade ore and 146,025 tonnes @1.52 g/t of low 
grade ore. 
The main M2 Lode provided 44% of mined ounces 
with 13% of ounces mined from M1. Compared to 
the previous financial year, M2 contributed a 
lower percentage of the total ounces mined due 
to increased contributions from the Challenger 
West. Challenger West Lode, which was mined 
for the first time in 2012, contributed an encour-
aging 32% of the total ounces. 
Ore production from the Main M2 and M1 lodes 
during the year was strongly impacted by the 
215 Shear due to its foreshortening of the lodes 
in advance of the predicted ‘79’ fault. This 
resulted in less ore above the ‘79’ fault.
Development
The current decline and mining front of the M1/ 
M2 orebodies has continued below the 215 
Shear, with the establishment of the 205, 195, 
175, 155 and 135 levels.
Stoping has been initiated on the 205, 195  
and 175 levels where ground conditions in the 
stopes have led to greater than planned dilution. 
Poor ground conditions were noted in the levels 
just above the 215 Shear and are thought to be 
associated with the shear rather than with the 
depth of the mine. In an effort to control the 
dilution, stope dimensions, pillar placement and 
cable bolting is being trialled. A combination of 
these ground control methods has resulted in a 
degree of success in reducing the dilution.
The mine schedule continued with a combined 
focus of development and stoping on two 
separate work areas being the high grade shoot 
at Challenger West on the 790, 810, 890 and 
870 levels, and the mining of high grade ore 
pods below the 215 Shear on M1 and M2.
A total of 6,799 metres of development was 
achieved for the year (exclusive of exploration).
The Challenger West orebody has proven  
to have the highest grade in the mine and the 
potential to extend from the surface to the base 
of the current mine. Current diamond drilling is 
targeting the upper and lower ore zones. 
Challenger West is the primary target for the 
next nine months to continue stoping and prove 
up the identified ore lodes for the future  
of the Challenger underground. Significant 
development has set up two means of egress, 
flow through vent and stoping in the past 12 
months. Challenger West will form the founda-
tion of future mining activities at Challenger  
into the foreseeable future.
Operations Report
The services provided by the OH & S team at 
Challenger include on-site emergency and clinical 
medical services for work related or private 
injuries, illness and counselling support services. 
Health programs delivered on site include health 
assessments and lifestyle promotional programs. 
The Health Centre has continued with the 
remote health care clinic in conjunction with the 
Royal Flying Doctor Service. This program has 
provided advice to assist personnel in managing 
private medical conditions and other health 
related topics. 
The site Emergency Management Team was 
involved in a large-scale exercise during the year 
that tested the team’s training and allowed the 
opportunity to review the site emergency 
management plan. 
Occupational Health and Safety
In April 2013, Kingsgate was saddened to report 
that an employee was fatally injured off site while 
returning home from the Challenger Gold Mine. 
It’s important to reflect for a moment to 
acknowledge the important contribution this 
individual made to his place of work but to also 
recognise the loss this person’s family suffers. 
Kingsgate is fully cognisant of the valuable 
contribution and dedication shown by this indi-
vidual and will strive to ensure that his legacy is 
respectfully remembered.
During 2013 there were four incidents resulting 
in lost time injuries, three restricted work inju-
ries, and six medically treated injuries, an overall