LGL’s 100% owned Mt Rawdon operation is an open pit gold and silver mine and process plant located in South East Queensland, approximately 80 kilometres south-west of Bundaberg. The project is a high quality, long mine life project producing gold at a very competitive cost for the Australian gold mining industry. Gold production during 2008 was 102,415 ounces. In 2009, the project is expected to contribute 90,000 - 100,000 ounces to LGL's gold production.

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History

LGL acquired the Mt Rawdon project in June 2008 through a merger with Equigold NL. Equigold had purchased the project in August 1998. Equigold completed a bankable feasibility study on the operation in June 1999, and began construction the following year. The Mt Rawdon project was commissioned in January 2001, with first gold production in February 2001. It has produced over 629,000 ounces of gold since operations began in 2001.

Geology

The Mt Rawdon gold deposit is a massive, volcaniclastic hosted, low grade gold deposit that exhibits excellent characteristics conducive to low cost mining and treatment. The surface extent of mineralisation forms a roughly ovoid zone of 200 metres x 300 metres at gold grades greater than 0.7g/t gold. The mineralisation takes the form of fine disseminated pyrite within the host rocks as well as more discrete sulphide veinlets. Gold grade generally increases as pyrite alteration and sulphide veining increase. The host volcaniclastic rocks strike northeast and have a shallow to moderate dip to the southwest.

Reserves

Reserves as at 30 June 2007 were 1.1 million ounces of gold and 4.3 million ounces of silver.

Mining

The operation mines a single open pit using conventional open pit mining methods of drill, blast, load and haul, using a local mining contractor. Total annual material movements are scheduled at 3.8Mbcm until 2010, after which this decreases by half with mining ceasing in 2015. The strip ratio is ~1.2: 1.

Processing

The processing plant consists of primary and secondary crushing, SAG and ball milling, followed by conventional cyanidation leaching. Mill throughput is maintained at ~3.4mtpa of ore with a recovery of approximately 89%.

Mine life

Mt Rawdon has an estimated mine life of ~10 years at ~100koz pa, with the operation scheduled to continue until 2017 at current estimates.

Exploration

The Mt Rawdon deposit area is covered by granted mining tenements — nine mining leases and an Exploration Permit covering an aggregate of 2,334km². The mining leases were granted between the years 1974 and 2000. LGL is committed to increasing reserves and extending the mine life of Mt Rawdon through on-going exploration in and around the mine.