Southern Cross2008/09 2007/08Open Pit Ore Mined t 1,119,997 1,593,797Grade g/t 1.9 1.7Underground Ore Mined t 1,003,202 900,049Grade g/t 3.8 3.7Ore Milled t 2,233,367 2,231,237Grade g/t 2.5 2.5Recovery % 88 88Gold Production oz 156,105 157,477Cash Operating Cost (1) A$/oz 888 555(1) Before significant itemsSouthern Cross Operations are centredat Marvel Loch, 30km south of thetown of Southern Cross and 360kmeast of Perth, Western Australia.The Southern Cross region has anendowment including past productionand current resources of approximately12 million ounces and is predominantlyheld by St Barbara. Four deposits in thedistrict have each produced more than1 million ounces. Mineralisation ishosted within shear zones at basaltsedimentcontacts and within bandediron formations.The gold treatment plant is locatedadjacent to the Marvel LochUnderground mine. The treatment plantprocessed just over 2.2 million tonnesin the 2009 fiscal year at a grade of2.5 g/t. Throughput was in line withexpectation. Gold production for thefull year was lower than expectedmainly due to the lower than forecastgold grades from open pit ore.Following a strategic review, all openpit operations have ceased.The Marvel Loch Underground mine isthe planned source of ore for fiscal year2010 and the processing plant is nowrun on a campaign basis, operating forone week on, one week off. Furthercapital has been allocated in the 2010plan for refurbishment of the processingfacility with emphasis on the leach andadsorption tanks, the crushing circuitand tailings storage facility.Marvel Loch UndergroundGold mineralisation extends over a1.3 kilometre strike length, has beenidentified to depths of over 800 metresbelow surface and remains open atdepth. High-grade mineralisation islocalised in quartz-veined shear zonesnear a mafic/ultramafic sedimentinterface. The ore body comprisesmultiple lodes. Those currently beingmined include:• Sherwood and Undaunted at thenorthern end;• Exhibition at the centre; and• East and New at the southern end.Open Pit ProductionOpen pit production for the 2009 fiscalyear was sourced from a number of smallopen pits at GVG and Nevoria. Just over1.1 million tonnes were mined during theyear and although anticipated to beprofitable, it proved more difficult toachieve the forecast grade of ore. As aresult of the strategic review in the Junequarter, it was decided to cease openpit mining at Southern Cross. Therecurrently are no plans to recommenceopen pit mining although a numberof higher grade prospects are beingevaluated for the future.OutlookThe focus of exploration anddevelopment at Southern Cross hasshifted towards the higher-grade MarvelLoch Underground to maximise goldproduction on a campaign milling basis.Underground mine production for fiscalyear 2010 will be 0.9 million tonnes.A number of other targets, includingNevoria underground, Edwards Findand others continue to be evaluated,but will only be developed when robusttechnical and financial evaluationsindicate satisfactory returns areachievable. Southern Cross productionis forecast to be in the range of 110,000to 130,000 ounces of gold for the 2010fiscal year at a cash operating cost inthe range of $840-930 per ounce.stbarbara.com.au – Annual Report 2009: 9
ExplorationDrilling established highgrade resources at Jaccolettiand Ruapehu.Programs will evaluate arange of strategic targets,covering:• Extensional undergrounddrill targets in the Gwaliaand Marvel LochUnderground mines;• Past sources of high-gradeproduction in theLeonora and SouthernCross districts; and• Emerging targets definedfrom new structural,geochemical andalteration studies.10