Southern Cross Operations Annual Environmental Report 2008 - 2009

2009 Annual Environmental ReportSouthern Cross Operations10. Future Activities10.1 ExplorationThe objective for SXO exploration is to establish a minimum five year mine life, withMarvel Loch Underground supplemented by other sources of high-grade production.Budgets have been structured to allow a greater emphasis on extensional undergrounddrilling in addition to grade control drilling in the immediate mine environments.Exploration targets at SXO for the coming year will also include sources of pastproduction including the Cornishman, Frasers, Corinthian and Copperhead mines. TheFrasers and Copperhead mines have been sources of significant past production in thebelt, with in excess of 1.5M oz produced in aggregate from open cut and undergroundoperations. Full collation of historical records will be conducted to establish JORCcompliantresources on these projects from existing drill data.Environmental surveys are planned or have been conducted over the areas likely to betargeted by future exploration.10.2 MiningThe Marvel Loch Underground is the cornerstone of SXO and is expected to be acontinuous source of ore for the 2009/2010 financial year. As a result of the strategicreview in the June quarter, it was decided to cease open pit mining at Southern Cross.There currently are no plans to recommence open pit mining although a number ofhigher grade prospects are being evaluated for the future. Previously, rehabilitationprograms have been designed to utilise synergies with proposed mining projects. Withthe cessation of surface mining activities at SXO, opportunities to source competentwaste rock for legacies is are no longer available, and therefore, rehabilitation will nowfocus on profiling, ripping and seeding of landforms at GVG, Nevoria and BroncoSouth.10.3 ProcessingThe processing plant is now run on a campaign basis, operating for one week on, oneweek off. Further capital has been allocated in the 2010 plan for refurbishment of theprocessing facility with an emphasis on the leach and adsorption tanks, the crushingcircuit and tailings storage facility. Work will also continue on identifying a preferredoption/s for future tailings capacity beyond the limits of current approvals of the existingTSF.67