Record quarter sales for gold company

GDR says for the period to the end of September sales were nearly 46,000 ounces for record quarterly cash costs of $271 per ounce sold.

The company has also finalised the Life of Mine Plan for its Macraes Project, and projects total future production of over two million ounces, extending the life to 2011, and a reduction in cash cost to $300 per ounce.

During the quarter GDR says it generated $11.5 million of operating cash generated, and repaid a $12.5 million corporate debt facility in July.

There has also been better than expected progress made on the optimisation study on the Reefton Gold Project and a decision on whether to develop the project should now be made in January, six months ahead of target.

GDR says utilising the excess capacity of the advanced pressure oxidation facility at Macraes will reduce the initial capital cost at the Reefton Gold Project and push that project's life out to an estimated 10-15 years.

It's estimated 250 people will be employed over the initial 10-month construction period, and 200 people will be employed directly and indirectly once the project begins operation.

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