Gold Production Update
March 26, 2010
Latest gold ore sale of 14,600t at 14.12 g/t Au.
Reed attributable share 2,468oz.
New Mineral Resource Estimate due second week April 2010.
Australian diversified resources company Reed Resources Ltd (ASX: RDR) and Joint Venture partner Kingsrose Mining Limited (ASX:KRM) are pleased to advise the sale of the latest parcel of gold ore produced from the Sand Queen Gold Mine, 100km North of Kalgoorlie (Figure 1).
Approximately 14,600 tonnes of ore grading 14.12 g/t Au was sold to a third party. The final financial results from the sale are dependent on the average gold price for the month of April and grade confirmation. The Company expects a cash margin of A$550-600/oz for its share of production, which is 40% of recovered metal (about 2,468 ounces).
Under the JV Termination Agreement (16 October 2009), Kingsrose will continue to mine from and above the 4 Level under the existing arrangement until 31 May 2010. Reed plans to continue mining the 4 Level from the existing shaft until economic resources are exhausted. Reed has dewatered down to 5 Level and is in the process of completing a new mine plan for mining 5 and 6 Levels from the existing shaft. A new Mineral Resource Estimate is expected for completion by mid April 2010.