This is from Westgold's June Q report. I think that RNI/AUR did...

This is from Westgold's June Q report.

I think that RNI/AUR did the right thing in selling Fortnum.

Fortnum Gold Project (FGP) The FGP completed its first full year of production in the quarter with a further 10% quarter-on-quarter increase in gold output. In its first full year the FGP produced 41,820 ounces at an average C1 cost of A$1,266 per ounce and AISC of A$1,387 per ounce which is in line with initial feasibility plans. FGP has had four consecutive quarters of increased gold output as the project ironed out its plant commissioning issues and transitioned from a feed of all low grade stocks to the progressive replacement with open-pit ores and underground ores. The project is set up to continue its ramp up in gold output as the Starlight mine commences stoping and grade increases as the virgin lodes are accessed. For the year the plant processed just over 845,000 tonnes of ore and again steadily increased to just under 237,000 tonnes in the June quarter, placing it close to assumed nameplate capacity of one million tonnes per annum. The FGP had quarterly gold sales of 13,754 ounces (13,390 ounces produced) at an average achieved price of A$1,683 for the quarter. Cash operating costs (C1) for the quarter were A$1,453/oz compared with the rolling 12-month average of A$/1,266oz. Quarterly estimates of AISC was A$1,623 per ounce compared with the rolling 12-month average of A$1,397 per ounce. Output for the quarter is shown below:



At the Starlight underground mine ore stoping of lower grade remnant areas commenced and underground mine output saw ore tonnage increase by 280% over the previous quarter and ore grade increase by 144% to be 77,411 tonnes at 3.19 g/t Au. Further increases are expected in the ensuing quarter as the mine approaches a steady state annualised production rate of approximately 400,000 tpa at 4.2g/t Au. The open pits continue with a steady performance, however the Yarlaweelor North open pit entered fresh rock which coincided with erratic gold distribution, an unexpected lower head grade and consequently negative reconciliation. FGP Exploration & Development Underground resource extension drill program at Starlight continued to deliver excellent results, including:
• 5.9 m at 9.15g/t Au from 35 m in WGU0052.
• 1.7 m at 24.87g/t Au from 77 m in WGU0047.
• 2.7 m at 10.67g/t Au from 191 m in WGU022A
. • 1.4 m at 17.96 g/t Au from 68 m in WGU025.