With the approvals of the Special Prospecting 
Licence ("SPL") applications still awaiting the 
Minister of Industry’s consent, exploration 
attention over the past 12 months has focused 
on new exploration opportunities and Mineral 
Resource enhancement targets within the 
Chatree Mining Leases. This exploration formed 
part of a strategic exploration program within 
the mining leases that commenced in late 2012 
and was designed to investigate a number of 
specific areas that had the potential to upgrade 
both Mineral Resources and ore reserves at 
Chatree and included:
〉〉 Upgrading Inferred Resources for optimal 
long term mine planning;
〉〉 Targeting extensions to currently known 
areas of mineralisation; and
〉〉 Exploring deeper higher grade structures 
that may have the potential to extend the pit 
deeper or potential for underground mining.
Highlights from this drilling program were most 
notable at A Prospect and Q Prospect. 
Exploration drilling within the Mining Lease 
north of A Pit identified a new area of broad high 
grade gold mineralisation confirming the contin-
uation of the A East Structure north of the 
existing resource. 
Significant results from these two holes include:
〉〉 07559DD – 49.4 m @ 4.3 g/t Au from 227 m 
(including 29.8 m @ 6.25 g/t Au from 
246 m); and 
〉〉 07575RD – 35.8 m @ 5.3 g/t Au from 235 m 
(including 3 m @ 45.30 Au g/t from 255 m).
At Q Prospect, immediately to the north of A Pit, 
exploration drilling encountered broad high 
grade gold mineralisation at surface that was 
not identified in previous campaigns. Significant 
results include:
〉〉 4715RC – 24.0 m @ 5.6 g/t Au from surface 
(including 8 m @ 11.3 g/t Au from 14 m);
〉〉 4718RC – 34.0 m @ 1.7 g/t Au from surface;
〉〉 4720RC – 26.0 m @ 0.9 g/t Au from surface;
〉〉 4636DD – 7.4 m @ 5.5 g/t Au from 219 m; 
and
〉〉 4732RC – 21.0 m @ 2.2 g/t Au from 111 m.
The success from this discovery of near surface 
gold mineralisation at Q Prospect allowed for 
commencement of mining activities in the area 
which has in turn had a positive impact on the 
Chatree operations in the latter half of the year.
Guided by this exploration strategy, drilling 
activity has successfully defined several new 
areas of mineralisation within the Mining Lease, 
most notably at Q and A North Prospects, and 
has also upgraded several larger areas of Inferred 
Resources to the Measured and Indicated 
Mineral Resource category. This activity sees an 
additional 30,300 metres of reverse circulation 
and diamond drilling included into the estima-
tion of a new Mineral Resource and Ore Reserve 
at Chatree.
As at the end of April 2013, the Mineral Resource 
estimate at Chatree using 0.30 g/t cut-off grade 
totals 4.03 million ounces of gold and 32.8 
million ounces silver in 188.3 million tonnes of 
rock. The upgraded resource, including deple-
tion from production to the end of April 2013, 
represents an increase of 356,000 ounces of 
gold and 2,162,000 ounces of silver when 
compared to the June 2012 Mineral Resource 
estimate for Chatree at the same cut-off grade.
With the sharp fall in the gold price during April 
2013, exploration drilling focus shifted to near 
surface oxide gold targets within the mining 
lease. Discovery of additional oxide gold miner-
alisation would have immediate benefits to the 
operation. Longer term exploration targets were 
temporarily suspended whilst the drilling 
focused on shorter term oxide targets in the 
early part of the new year. 
Operations Report
17
continued
u
Operations Report
CHATREE EXPLORATION
Chatree Geologist examining drill core