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MIDROC Gold Mine Pvt. Ltd. Co. (MGOLD)

GOLD PRODUCTION & MARKETING

The Legadembi Gold Mine is an open pit operation with annual production of 1.6 million tones of ore. An underground mine is currently being developed beneath the open pit to extract deeper level ore - the commencement of full-scale underground mine operations is planned for 2007/08.

Gold is recovered in a Carbon in Pulp (CIP) technology process plant. Yearly average production is about 4500kg of gold-silver doré (fine gold production is in the order of 3,500kg). The average fitness is 78% for gold and 21% for silver; the remaining 1% accounts for other elements of no commercial interest. The gold doré bars are shipped to Argor Heraus refinery in Switzerland; the gold is then refined and sold to ARGOR-HERAEUS SA in Mendrisio Switzerland.

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