chief executive’s review This project is based on a significant ore body. Measured, indicated and inferred resources amount to approximately 4.5 million ounces of gold that include a reserve of around 1.6 million ounces in the pit. It is still over 100m wide, 400m below the surface which provides a level of confidence that underground mining will see considerably more ounces recovered. The key to understanding the opportunity of Syama is in the metallurgy. We put a lot of effort into this aspect during our pre-feasibility study with due regard to the earlier experiences of the previous owners, BHP and Randgold Resources, in dealing with it. Our proposed conventional sulphide flotation/ concentrate roast treatment route provides a robust approach to successful ore treatment and will require some modifications and additions to the existing plant, however a large part of it can be utilised. A bankable feasibility study is underway and we expect to complete it by the end of this calendar year. Also, in this period we aim to finalise the fiscal terms for the redevelopment with the Government of Mali. During the coming year our listed options fall due for exercise. These options are currently well in the money and, with an eighty-cent exercise price, will deliver A$40 million of new capital on exercise. Should we commit to Syama, this would provide a healthy equity component to its funding. This means that a significant portion of our growth would be funded from our existing capital structure, which ensures maximum participation in that growth by our shareholders. Gold hedging has been a contentious issue for gold companies over the last few years. Our hedging policy is to retain as much upside as we can, but to provide downside protection on the investments we have made. This means we try to use put options and call options rather than forward sales as much as we can.  Our hedging arrangements allow us considerable flexibility in settling committed positions and at 30 June this year we had committed ounces amounting to about 19% of our reserve base, which means we retain a very modest hedge position. We have continued to promote the Company and its prospects to the Australian and international market place. As we deliver on the assets we have in place, we will begin to attract more interest from investors in these markets. We have achieved a lot this year and it has been as a result of the tremendous commitment and effort of all our employees. We are also grateful for the support received from our shareholders and other groups during the year. We do look forward to the challenges in the year ahead.  Peter Sullivan Chief Executive Officer RESOLUTE MINING LIMITED 2004 ANNUAL REPORT 5