Australian gold producer Apex Minerals (ASX:AXM) has announced development rates underground at Wiluna in Western Australia have continued to show considerable and consistent improvements with November achieving a total rate of 625 metres.
The November result is some 20% higher than October following a consistent monthly improvement which is continuing into December.
This is important in setting up the medium to longer term viability of the mine by opening up multiple ore sources to achieve targeted underground production rates and efficiencies.
Stoping of ore is currently occurring on two levels in the Calais ore-body and two levels in the Henry 5 North ore body. Stoping commenced ay Henry 5 North earlier this quarter and has provided a second independent high grade underground mining area.
During the quarter, Apex has been driving toward the main ore zone at East Lode North and has encountered some strong mineralisation over a 30 metre strike, approximately 2-3m wide with face samples averaging around 10g/t gold in an area where ore was not previously expected.
Development in the main ore body commenced over the weekend. Stoping is expected to commence toward the end of the March quarter, while development toward the Burgundy ore-body commenced in October with first development ore expected in January and stoping commencing in the June Quarter.
Apex chief executive and managing director Mark Ashley said there wre currently about 12,000t at 6g/t gold of broken stoping stocks underground awaiting to be hauled to the surface for immediate processing.
"Typically this would be a much lower number - less than 1,000 tonnes," Mr Ashley said.
"However Apex has experienced lower than normal levels of underground equipment availability particularly with regard to loaders and trucks over the past two weeks.
"Apex has initiated discussions with the fleet supplier (who also provides on-site maintenance services) at a senior level with regard to improved equipment availability to ensure an effective and speedy resolution."
He said the assessment of Wilsons deposit at the company's Gidgee tenements has continued during the quarter, however, it is likely that there may be a delay in being able to provide feed to Wiluna in April 2010 as previously expected.
Apex currently expect a delay of two to three months due mainly to formalities required to upgrade the road between Wilsons and Wiluna. Apex is in discussions with the Wiluna shire in this regard.
Apex would also like to take this opportunity to provide an update on exploration Resource development drilling from underground has been recently expanded with the sourcing of an additional underground drill rig.
Exploration drilling into Calvert and Golden Age extensions will commence in the first half of January and there will also be an ongoing focus on drilling extensions to Henry V and Burgundy.
In addition to the expanded underground exploration program a renewed approach to surface exploration away from the immediate mine environment is being planned commencing with a target generation exercise based on a revised geophysical interpretation and geological modelling of the mineralised structures.
Drilling of these targets is expected to commence during the first half of 2010.
Mr Ashley said the company noted that it was currently expecting production for the quarter to be similar to the September quarter as it developed more ore sources to set up the future of the mine.
Cash on hand at 30 November 2009 was $22 million with all the $70 million senior Secured notes, including a short term $10m element, having been fully repaid (at a cost of $63 million) and with trade and other payables having been reduced from $44 million at 30th June to $14m at the end of November 09.