The Porphyry Gold Mine (150km NE of Kalgoorlie) was reopened in November 1983 with production commencing in April 1984._x000D_
Original reserves quoted for the open pit were 822000 tonnes at 5.2 g/t Au based on wide spaced diamond drill holes. Close spaced grade control drilling has revealed some loss of tonnage and a significantly lower grade. In the area of the pit mined to 30 June 1985 this grade control reserve estimate contained 67% of the gold in the original ore reserve with the grade being 19% lower. It is anticipated that the final grade control reserve estimate will contain around 80-85% of the gold contained in the original reserve. There has been close agreement between the Mill Head grade (4.19 g/t Au) and the grade control predicted grade (4.2 g/t Au) confirming that dilution is not a major problem. After initial poor agreement (attributed to "lock-up" in the circuit) the bullion calculated head grade steadied out at 93% of the grade control prediction. This difference is considered to represent the geostatistical bias in the drill hole/crushed rock sampling. Gold recovery has been in the range 93-95% (compared with bullion calculated grade). The net result is that the recovered grade of ore mined to 30 June 1985 is 70% of the original ore reserve grade.