Operations Report 14 For the 12 months to June 2013, the availability  of the RH90 fleet has been at 80%, with the  RH40 fleet at 78%. The target availabilities for  these fleets are 88% and 85% respectively.  Availability of the haul trucks was 85% versus a  target of 90% for the 777D fleet. A commit- ment has been undertaken by the contractor to  address the under performance. Approximately 2.5 days of production were lost  due to rainfall during the year. Total rainfall for  the year was 1.3 metres which is in line with the  long term average. Mining operations continued on a 24 hour per  day basis throughout the year, with the excep- tion of the development of Q prospect.  Due to the proximity of Q prospect to the  community and the local roads, development  began in March 2013 on a 5 day week basis on day shift only. In April this was extended to 7 days per week on day shift only.  Upon completion of mining of the C North  Cutback, it was backfilled to allow the reinstate- ment of Highway 1301 as well as to improve  access for waste rock haulage to TSF#2. The  reinstatement of the section of Highway 1301  that passes through the C North area is still  pending final approval from the Department of  Highways in Bangkok and Phitchit. The engineered fill for the second lift of TSF#2  was constructed from November 2012 to May  2013. This will provide an additional 10.4 million  tonnes of storage capacity. Waste rock from A Pit is being continuously sent to TSF#2 at a  rate of approximately 7,000 BCM per day for the  construction of the downstream embankment.  During the year, a number of cost saving initia- tives were identified and implemented. The  initiatives included trials using reduced explosive  powder factors and changing from blasting  6 metre benches to 9 metre benches, with  subsequent savings in bulk explosive and drilling  costs. Work was also undertaken to validate  increasing the size of the grade control drilling  pattern, without decreasing the accuracy of  grade estimation. This has resulted in a signifi- cant saving in grade control drilling costs. As part of the budget/life of mine planning cycle,  opportunities for improving project value were  identified through the fine tuning of pit designs  and sequencing of push backs within each of the  pits. This involved running optimisations on  individual ore bodies and targeting areas of high  value within the pit shells.  To test the robustness of the life of mine plan,  various scenarios were investigated at varying  gold prices. The result of this work highlighted  that A Pit was still very robust.  The new plant, Chatree North, continued to  operate in commissioning and optimisation  mode from the start of July 2012 until its  completion at the middle of August. The Plant  was shut down for a total of 63 days while  undertaking a drawn-out process for the  granting of a Metallurgical License. The Plant  resumed operation in October and quickly  exceeded design processing capacity with  throughput of 3.47 million tonnes per annum  (Mtpa) or 28% above the design rate of  2.7 Mtpa. The Plant performed extremely well  Physicals 2012/13  2011/12 % Change  Waste mined bcm 5,649,614  6,258,662  -44% Ore mined bcm 2,708,634  1,9 47,275  39% Waste:ore ratio 2.09*  3.2* -35% Ore mined tonnes 7,051,4 8 8  4,986,173  41% Ore treated tonnes 5,699,014  5,115,720  11% Head grade (gold) Au g/t  0.9   0.9  0% Head grade (silver) Ag g/t  11.9   11.6  2.6% Gold recovery %  79.9   84.4  -5.3% Gold poured ounces 133,681  121,372  10% Silver poured ounces 1,000,569  918,314  9.3% Cost Category 2012/13 $US/oz Gold  Produced 2011/12 $US/oz Gold  Produced % Change  Cash operating cost  620   460  35% By product credit**  (180)  (210) -14% Depreciation / amortisation  185   143  29% Total production cost  952   761  25% * After waste capitalised to TSF ** Net of silver royalties www.kingsgate.com.au