Ann: Production Update, page-3

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" Millennium commences ramp-up to
+100,000ozpa production run-rate
at Nullagine Gold Project
Transition to new high-grade ore sources at Golden Eagle,
Au81 West and Redbeard this quarter
• New mining strategy underpinned by larger, higher-grade ore
sources will move into full swing in the September quarter with
production for the second half of CY2018 to be sourced from:
o Golden Eagle – pre-strip well advanced and first higher
grade ore benches on schedule to be accessed in
September;
o Au81 West - first high-grade ore benches accessed in
late June
o Redbeard – grade control drilling complete,
environmental approvals submitted and mining set to
commence in early August;
o Bartons Underground – underground development
making excellent progress with 561m of development
completed and first high-grade development ore
expected in July;
• The higher average grade profile of these deposits is expected
to underpin an increase in head grade for the second half of
CY2018, putting Millennium on track to achieve its targeted
100000ozpa run-rate during Quarter 4
• Production guidance for Quarter 3 is 20,000 to 22,000oz,
increasing to 25,000oz for the December Quarter
• June quarter gold sold was 15,127oz (gold produced 12,600oz)
As previously foreshadowed, a combination of higher pre
stripping costs at Golden Eagle and lower grade profile at the
top of the Golden Eagle ore body restricted production
• Cash and bullion at 30 June 2018 was $13.6m after outlaying
$9.2M during the quarter on developing the Bartons
Underground ($4.2M), Sulphide Plant Expansion Study ($0.5M)
and Exploration ($4.5M)
• $17.5m revolving loan facility from Investec remains undrawn
• Millennium expects to achieve its previously announced annual
guidance for CY2018 of 75-80koz (1HCY2018: 33,000oz), with
a corresponding increase in gold production and reduced AISC
in the second half as it moves towards a 100,000ozpa run-rate