An operations report was presented by the mine's general manager, Troy Cole, to the August meeting of the Environmental Review Committee in Stawell.

Mr Cole indicated that exploration drilling results that had commenced in late 2007, combined with improved efficiencies, had led to the completion date for the operation being extended by 12 months.

He said at the previous ERC meeting, based on the extraction of approximately 110,000 ounces of ore per annum, the mine's expected life span was 2.5 years. The development completion date had been set as January, 2009, with production completion expected in March, 2010.

There were questions raised at that particular meeting as to whether or not exploration success at the GG6 zone, below the Golden Gift area and new gold discoveries at the North Magdala site, would have potential to extend the mine's life.

Mr Cole announced at the August ERC meeting that today's estimates, still working on the 110,000 ounces per annum extraction levels, had the mine's life expectancy at 3.5 years, with the development completion set at October 2010 and production completion being extended to November 2011.

The company had announced in April this year that results below the Golden Gift area, known as the GG6 zone, had been pleasing.

Seven diamond drill results in the area, which is located within 210 metres of existing reserves, outlined two main zones of mineralisation, the basalt contact and stockwork zones.

These zones extend over 270 metres along strike and over 130m in vertical height.

Assays from the basalt contact zone included:

* Hole MD-5267 contained two excellent intervals - the first interval assayed 11.2 grams per tonne (g/t).

* Gold over 21.4m including 31.4 g/t over 3.3m; the second interval assayed 11.2 g/t gold over 16.5m.