22 Operations Report Mine production for the year totalled 502,034  tonnes of ore at a reconciled grade of 4.17 g/t  comprising 356,009 tonnes at 5.26 g/t of high  grade ore and 146,025 tonnes @1.52 g/t of low  grade ore.  The main M2 Lode provided 44% of mined ounces  with 13% of ounces mined from M1. Compared to  the previous financial year, M2 contributed a  lower percentage of the total ounces mined due  to increased contributions from the Challenger  West. Challenger West Lode, which was mined  for the first time in 2012, contributed an encour- aging 32% of the total ounces.  Ore production from the Main M2 and M1 lodes  during the year was strongly impacted by the  215 Shear due to its foreshortening of the lodes  in advance of the predicted ‘79’ fault. This  resulted in less ore above the ‘79’ fault. The current decline and mining front of the M1/  M2 orebodies has continued below the 215  Shear, with the establishment of the 205, 195,  175, 155 and 135 levels. Development Occupational Health and Safety Stoping has been initiated on the 205, 195 and 175 levels where ground conditions in the  stopes have led to greater than planned dilution.  Poor ground conditions were noted in the levels  just above the 215 Shear and are thought to be  associated with the shear rather than with the  depth of the mine. In an effort to control the  dilution, stope dimensions, pillar placement and  cable bolting is being trialled. A combination of  these ground control methods has resulted in a  degree of success in reducing the dilution. The mine schedule continued with a combined  focus of development and stoping on two  separate work areas being the high grade shoot  at Challenger West on the 790, 810, 890 and  870 levels, and the mining of high grade ore  pods below the 215 Shear on M1 and M2. A total of 6,799 metres of development was  achieved for the year (exclusive of exploration). The Challenger West orebody has proven to have the highest grade in the mine and the  potential to extend from the surface to the base  of the current mine. Current diamond drilling is  targeting the upper and lower ore zones.  Challenger West is the primary target for the  next nine months to continue stoping and prove  up the identified ore lodes for the future of the Challenger underground. Significant  development has set up two means of egress,  flow through vent and stoping in the past 12  months. Challenger West will form the founda- tion of future mining activities at Challenger into the foreseeable future. During 2013 there were four incidents resulting  in lost time injuries, three restricted work inju- ries, and six medically treated injuries, an overall  reduction of 48 percent on the previous year’s  25 recordable injuries. Total injuries reported  have also decreased by 15 percent. There were no air medical evacuations during  the year. In April 2013, Kingsgate was saddened to report  that an employee was fatally injured off site while  returning home from the Challenger Gold Mine.  It’s important to reflect for a moment to  acknowledge the important contribution this  individual made to his place of work but to also  recognise the loss this person’s family suffers.  Kingsgate is fully cognisant of the valuable  contribution and dedication shown by this indi- vidual and will strive to ensure that his legacy is  respectfully remembered. The services provided by the OH & S team at  Challenger include on-site emergency and clinical  medical services for work related or private  injuries, illness and counselling support services.  Health programs delivered on site include health  assessments and lifestyle promotional programs.  The Health Centre has continued with the  remote health care clinic in conjunction with the  Royal Flying Doctor Service. This program has  provided advice to assist personnel in managing  private medical conditions and other health  related topics.  The site Emergency Management Team was  involved in a large-scale exercise during the year  that tested the team’s training and allowed the  opportunity to review the site emergency  management plan.  www.kingsgate.com.au