23 Operations Report Operations Report CHALLENGER EXPLORATION M2 Shoot System below the 215 Shear Aminus Corridor Challenger West South East Zone (SEZ) Resource Development continued Exploration expenditure totalled $8.8 million  during the year comprising $1.8 million of  resource development and exploration costs  delineating targets outside of the reserve and  $7.0 million on underground mining of lodes  outside of the reserve. The majority of the  mining exploration costs occurred in the first  quarter and included portions of 240 and 205  Aminus 2 and 670 Challenger West before they  were upgraded to the reserve.  With the new mining fronts established below  the 215 Shear, development drilling of the  M1–M2 lodes on a level by level basis was facili- tated. This revealed a number of significant  intersections in both lodes as well as continuity  of overall shoot geometry.  deepest intersection to date of 0.5 metres @  59.7 g/t was returned from 119 mRL. Overall,  delineation of the lode and extension has been  successful to date, but targeting and representa- tive challenges remain due to its narrow and  poddy nature. The SEZ structure was evaluated from the 1100 level with three flat fans targeting 1080– 1120 mRL, as well as the 940, 280, 240 and 175  levels. A number of significant intersections  were returned but overall the strike length of  continuous high grade zones appeared limited. The Challenger West Shoot continued to be a  focus of development and resource develop- ment drilling, and was targeted with programs  from the 800 level (targeting 770 mRL), 670  level (targeting 690–540 mRL), 640 level  (targeting 500–450 mRL), and 215 level  (targeting 170–50 mRL). In addition, the  An intersection of 1.4 metres @ 15.0 g/t with  associated visible gold was returned in the  Aminus corridor as part of Challenger West  resource drilling. This lies to the south of  Challenger West OD1 and therefore a large  distance along strike of Aminus 2. Whilst  isolated, it demonstrates the potential along  multiple positions within the Challenger struc- tural domains. Underground diamond drilling was employed as  the main medium for Resource Development of  the various Challenger lodes. The Challenger  West lode was a focus, as well as the ongoing  evaluation of the M1 and M2 shoot systems  beneath the 215 Shear. 