Burnstone Property

In 2010, underground drilling at the Burnstone Property totaled 25,905 ft (7850 m), split between 4,907 ft (1,487 meters) cover and 20,998ft (6,363 meters) delineation drilling. The focus continues to be on Block C delineation and infill evaluation to support the mine plan. The number of operating rigs increased to six during the year. In addition, a more powerful LM75 diamond drill rig capable of drilling holes up to 3,300 ft (1,000 meters) was mobilized in order to drill deeper fan boreholes into Block C.

Surface drilling was aimed towards infill drilling in the initial Burnstone mine plan area. Twenty-three surface diamond boreholes were completed during 2010. This drilling specifically targeted areas where better resolution structural data was needed. Work programs outside the mining right as well as investigations of sub-cropping mineralization in four areas are being reviewed. In particular a 3-D seismic survey is being scoped for possible effecting in 2012.

Exploration drilling for Kimberley Reef on the mineral rights held by Southgold Exploration outside the Burnstone Mining Right area is conducted on a care and maintenance basis at present. These programmes will increase as the Burnstone Mine achieves steady production.