While production was above forecast, it also reflected the recovery from the weather affected previous two quarters.
Site operating cash costs reduced by 33% from previous quarter at A$1,070 per ounce with all in sustaining costs (AISC) of A$1,201 per ounce.
Full year guidance for FY2017 remains at production of 53,000 to 58,000 ounces with an AISC of A$1,600 – A$1,750.
A substantial exploration program has been implemented to build on the existing resources and reserves inventory, testing underground ore positions at the Tomingley mine and at near mine and regional exploration targets.
Tomingley Gold Operations (TGO)
The TGO is based on four gold deposits - Wyoming One, Wyoming Three, Caloma and Caloma Two, located 50 kilometres southwest of Dubbo in New South Wales.
TGO recorded 59% higher production levels compared to quarter two, as was expected.
This was due to higher grade ore being released, particularly in Caloma and Caloma Two, and clearer weather generally.
Gold poured for the quarter was 18,721 ounces, with sales of 16,303 ounces at an average sales price of A$1,694 per ounce generating revenue of A$27.6 million.
Bullion on hand increased by 2,414 ounces to 4,986 ounces, with a fair value at quarter end of A$8.2 million.
Site operating cash flow after development costs for the quarter was $6.5 million, but due to delayed payments from the December quarter in January, the net position was $2.0 million.
The hedge book at quarter end was 31,000 ounces gold at an average forward price of A$1,716 per ounce.
An extensive regional air core drilling program commenced within the wider Tomingley Gold Project in February 2017.
16,277 metres have been completed to date testing an initial area from the southern boundary of TGO mine site to the Cemetery.
Much of the recent work has been completed in excess of 5 kilometres south of the mine.
Early results indicated that stratigraphy and mineralisation similar to that which hosts the ore deposits at TGO is present in the drilled areas.
The mineralised results are similar to those recorded in the very early drilling of the Wyoming One deposit.
The Dubbo Project (DP)
The DP remains construction ready, with the mineral deposit and surrounding land wholly owned; all State and Federal approvals in place; an established flowsheet and a solid business case.
Negotiations for off-take contracts and product pre-certification continue.
The funding strategy has not changed with strategic investment, Export Credit Agency (ECA) finance and commercial debt remaining as the key components of the envisaged project funding suite.
The project remains ready for detailed design and construction to commence, contingent on financing.