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Kalgoorlie LakeYiew Pty Ltd
<br />(20.9% owned, 6% dvectly and 14.9% through Gold
<br />Mmes of Kalgoorlie Limited, and managed)
<br />
<br />~ Ian Lets
<br />/~ Resident
<br />WMC acts as Manager of KLVwhich
<br />holds a 52°lo interest in, and management
<br />responsibility for, Kalgoorlie Mining
<br />Assoaates (KMA). KLV's net profit (or the
<br />year was $12.0 million ($12.6 million) and
<br />dividends of $13.9 million ($13.9 million)
<br />were declared.
<br />Total gold production declined by 5% due
<br />mainly to the lower grade of ore mined at
<br />Mount Charlotte but offset to some extent
<br />by a higher grade of ore from the Fimiston
<br />open cut.
<br />KMA reported as follows for the year ended
<br />17 June, 198b.
<br />Production and Development
<br />1985/86 198485
<br />Ore treated (tonnes) 1.493.600 1.423.300
<br />Recovered grade (g/tonne) 4.62 5.11
<br />Gold recovered (ounces) 222.020 2?4,OS7
<br />Development (metres) 10,690 9,130
<br />At Mount Charlotte, the waste handling
<br />facilities at the Cassidy Shaft were
<br />completed and the installation o(ore
<br />handling equipment is proceeding
<br />satis(actonly. The mom decline was
<br />extended to a depth of 805 metres below
<br />the surface.
<br />At Fimiston, developments o(i the Chaffers
<br />Shaft continued and work began on the
<br />installation o(an underground crusher on
<br />the No. 23 Level. Production and develop-
<br />ment o(the Eastern Leases continued
<br />normally through the Perseverance and
<br />the Lake View Shafts.
<br />Production continued normally from the
<br />Horseshoe and Judd open cuts. Mining of
<br />the Morrison open cut, which was
<br />commenced early m the year, made a
<br />significant contribution to the increased
<br />open cut production.
<br />Exploration and Ore Reserves
<br />In situ ore reserves at Mount Charlotte
<br />were estimated as follows:
<br />_ June 1986 June 1985
<br />Proved ore (tonnes) 7,100,000 6,900,000
<br />Grade (g/tonne) 4.3 4.3
<br />Probable ore (tonnes) 1,300,000 1500.000
<br />Grade (g(tonne) 4 0 4.3
<br />Pattern diamond drilling into the Charlotte
<br />orebody above Flanagan Fault converted the
<br />majoslty oSthe probable ore reported last
<br />year into proved ore.
<br />A broad pattern of underground diamond
<br />drilling into the Charlotte Deep ore position
<br />was completed.This confirmed mineralisation
<br />beneath Flanagan Fault indicated by previous
<br />exploratory drilling, and a probable reserve of
<br />900,000 tonnes with a grade of 3,9 gftonne
<br />has been included for Charlotte Deeps.
<br />Further pattern drilling will be required
<br />to more fully define ore reserves as
<br />development proceeds from Cassidy Shaft.
<br />However the drilling results to date indicate
<br />a weakening o(the ore system at depth, and
<br />the potential for major additions to ore
<br />reserves is likely to be limited.
<br />Recoverable ore reserves at Fimiston were
<br />estimated as follows:
<br />Junel986 Iune19BS
<br />Refrattory Ore
<br />Proved ore (tonnes) 3,200.000 3.100900
<br />Grade ($Aonne) 8.3 8A
<br />Probable ore (tonnes) 1,000,000 -
<br />Grade (g/tonne) 4.7 -
<br />Provedand probable ore
<br />-open cut (tonnes) 930,000 490,000
<br />Grade (g/tonne) 43 4.9
<br />Oxidised Ore
<br />Proved and probable ore
<br />-open cut (tonnes) 1,400.000 1,500,000
<br />Grade (g/tonne) 45 4.9
<br />Fimiston East and Fimiston West reserves
<br />have been combined now that
<br />development and production are in
<br />progress in both areas.
<br />Underground development and drilling
<br />at Fimiston East have defined significant
<br />tonnages of lower grade probable ore
<br />amenable to bulk mining methods. This ore
<br />cannot be defined precisely enough to be
<br />classified as proved and has been included as
<br />probable reserves.
<br />Reverse circulation percussion drilling
<br />defined additions to refractory and oxidised
<br />ore reserves in the Judd open cut.
<br />Gold Mines of Kalgoorlie
<br />Limited
<br />(3111% owned)
<br />In May and June 1986, WMCH acquired a
<br />further 324,750 shares in GMK thus
<br />increasing its interest from 28.9% to 31,8°!0.
<br />GMK~s major asset is a 47°/o interest in
<br />Kalgoorlie Lake View Pty Ltd (referred
<br />to above). GMK reported a net profit of
<br />$5.8 million compared with $6.1 million in
<br />the previous year. Dividends of $6.7 million
<br />($8.9 million) were declared during the year.
<br />Exploration continued to assess the near
<br />surface potential o(several Kalgoorlie leases
<br />held by GMK as part of the Western Leases
<br />)oint'Jenture.
<br />Hill 50 Gold Mine No Liability
<br />(38.0% owned since S September 1986, and
<br />managed)
<br />Colin Cruickshank
<br />Resident Manager
<br />Since the year end WMCH acquired
<br />4,054,000 shares in H5O increasing its
<br />interest from 35.0% to 38.0%,
<br />Hill 50 made a profit of SI.S million
<br />{compared with a loss of $0.2 million last
<br />year) before an extraordinary profit of $nil
<br />($LI million).
<br />Production and Development
<br />1985/86 1984!85
<br />Ore treated (tonnes) 240,500 188.200
<br />Recovered grade (g(tonne) 5,18 5.67
<br />Gold
<br />recovered (ounces) 40.019 34.340
<br />Development (metres) 1,320 1.740
<br />The Morning Star, Water Tank Hill and Hill
<br />50 underground operations contributed
<br />74% of total production for the year with
<br />the remainder being won from open cuts,
<br />pnncipally the Morning Star
<br />Development continued on the Morning
<br />Star Nos. 4, 5, 9, II and 12 Levels. Further
<br />sinking of the Morning Star Shaft
<br />commenced in April.
<br />The Evening Star open cut was commenced
<br />late to the year.
<br />Remnant sloping operations continued at
<br />Hill 50 Shaft and development o(the Mars
<br />No. 2 Level ore zone has allowed siope
<br />development and production to commence.
<br />Early In the year the treatment plant was
<br />converted to acarbon-in-leach circuit and
<br />following the installation and commissioning
<br />of a rod mill in December, milling capacity
<br />was increased by 50R'o.
<br />Exploration and Ore Reserves
<br />Recoverable ore reserves were estimated
<br />as follows:
<br />tune 1986 June 1985
<br />Underground
<br />Proved ore (tonnes) 670,000 640.000
<br />Grade (gltonne) 7.0 7.5
<br />Probable ore (tonnes) 740,000 450.000
<br />Grade (gltonne) 7.3 8.0
<br />Open Cut
<br />Proved and
<br />probable ore (tonnes) 340.000 180,000
<br />Grade (g/tonne) 9 9 4,5
<br />Reverse circulation and vacuum drilling
<br />defined new open cut reserves at the
<br />Evening Star prospect and extensions to the
<br />existing Morning Star pit. Underground
<br />reserves increased following level and scope
<br />development at Mars and Hill 50 together
<br />with diamond drilling and reassessment of
<br />IS
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