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reduction of 20% in open cut ore compared <br />to the previous year. <br />Over 1,000 metres (2,690 metres) of <br />underground development was completed <br />at the AJax Shaft with the major develop <br />meet being carried out on the No. 10 Level <br />to gain access to diamond drill indicated <br />reserves south of the present workings. <br />Over 600 metres of development was <br />completed at the North Royal and Regent <br />Shahs, to test areas of interest and to provide <br />extraction drives for some larger ore blocks. <br />At the North Royal, No. 4 open cut came <br />into production and mining of remnant ore <br />continued in Nos. 2 and 3 open cuts. <br />Rehabilitation and rebuilding of the Phoenix <br />treatment plant continued during the year. <br />Almost all of the original 50-year-old plant <br />has now been replaced. The counter current <br />decantation circuit was converted to a <br />carbon in-leach process and a new stepping <br />plant and gold room were commissioned <br />in March 1966. The new facilities have <br />improved gold recoveries and reduced <br />operating costs. <br />During the year 6,000 ounces of gold were <br />recovered from the clean up of the old plant <br />bringing the total to 6,8517ounces. A small <br />amount of material remains to be treated. <br />Exploration and Ore Reserves <br />Ore reserves were estimated as follows: <br />June 1986 June 1985 <br />Recoverable In Si[u <br />Underground <br />Proved ore (tonnes) 500.000 380.000 <br />Grade (gltonne) 9.5 10.0 <br />Probable ore (tonnes) 800,000 640.000 <br />Grade (gltonne) 7.3 7.9 <br />Open cut <br />Proved and <br />probable ore (tonnes) 330,000 20Q000 <br />Grade (g/tonne) 8.9 13.0 <br />Ore reserves were estimated as recoverable <br />in 1966 compared with in situ previously. <br />Underground reserves increased following <br />reassessment of minimum mining widths and <br />remnant ore in current mining areas. <br />Diamond drilling at the O.K. Shaft located <br />additional probable ore below the No. 5 <br />Level. <br />At Scotia, 30km south of Norseman, reverse <br />circulation and diamond dulling intersected <br />high grade quartz veins at shallow depth and <br />an estimated 160,000 tonnes with a grade of <br />7.5 gltonne have been included in open cut <br />reserves. <br />14 <br />