Unity Mining (UML)

Shares / Stock Code

UML

Stock Exchange / Sharemarket

ax

Unity Mining Limited (UML) is an Australian gold producer which owns and operates two producing underground gold mines in Australia; the Kangaroo Flat Mine in Bendigo, Victoria and the Henty Gold Mine which is situated on the West Coast of Tasmania. On the 7th of May 2010, the Company acquired a 20% interest in West-African gold explorers GoldStone Resources, who have exploration assets in Ghana and Senegal.

The Kangaroo Flat Mine is located in the Bendigo Goldfield which is centered on the urban area of the City of Greater Bendigo. Bendigo is located 125 km northwest of Melbourne in the central Victorian Goldfields and has a population of 100,000 people making Bendigo the third most populous city in Victoria. The Bendigo Goldfield has the second largest historical production for a goldfield in Australia (after Kalgoorlie's Golden Mile) with an historic total production of 22 million ounces of gold from over a century of mining.

The Henty Gold Mine was acquired in July 2009 and has produced in excess of one million ounces of gold over a 13 year period. The Henty Gold Mine is situated 10 km south of the Rosebery base metals mine, on the West Coast of Tasmania.

GoldStone is an AIM-listed West African gold exploration company with a successful and experienced management team based in South Africa that have assembled a highly prospective package of properties in West Africa.

The Company’s key asset is the Homase project in the Ashanti Gold Belt in Ghana, where GoldStone may earn up to an 85% interest. The GoldStone public release on 21 April 2010 announced a 282,608 oz gold resource, estimated in accordance with JORC guidelines, beneath and along strike from the Homase main pit. The lease area is believed to have excellent exploration potential and is located some 15 km NE of AngloGold Ashanti’s 42Moz Obuasi Gold Mine.

Other GoldStone assets include the Manso Amenfi licence in Ghana, which GoldStone believes is prospective as it lies along a trend of intense artisanal gold mining and in a similar belt of rocks to Perseus’s Ayanfuri gold deposit, located some 50 km to the northeast. The Company also has a large 471 km² exploration license in Senegal near the border with Guinea. The ground is to the south of Randgold’s licence containing the 3.4 Moz Masawa discovery and along trend from Sabodala (2.2 Moz), Yatela (2 Moz) and Sadiola (10 Moz) mines.

Unity Mining is investing significantly to create a sustainable production base through both continued exploration and development at its Australian gold operations, and through its investment in GoldStone Resources.

Henty Gold Mine

The Henty Gold Mine is an underground gold mine that commenced operation in 1996 and is located in glaciated mountainous terrain in the upper Henty Valley on the West Coast of Tasmania, adjacent to the Southwest Conservation Area. The nearest main towns are Rosebery, 10 kilometres to the north, Zeehan, 19 kilometres to the west and Queenstown, 23 kilometres to the south.

Henty lies within the mineral rich Mt. Read Volcanic Belt in Western Tasmania that hosts the Hellyer, Que River, Rosebery, Hercules and Mount Lyell base metal deposits. The eastern side of the belt is dominated by the Henty Fault which runs north-east for over 60 kilometres between Mount Charter and Mount Read. The Henty operation is based on a series of structurally complex high-grade zones of gold mineralisation that occur within a package of highly altered volcanic rock adjacent to the Henty Fault.

Access from surface to the series of orebodies at Henty is via shaft and decline, linked to a common portal exit. Mining methods used at Henty vary according to the ore body geometry and geotechnical characteristics of the ore body and host rock. The main mining methods are longhole bench stoping, transverse open stoping and flatbacking (cut and fill). Stopes are filled with either paste fill or mullock.
The process plant has an annual plant capacity of 300 kt/y and utilises a static grizzly, SAG mill, gravity circuit and conventional CIL plant.

Rehabilitation of selected areas disturbed by mineral exploration within the Henty lease commenced in 1993. Progressive rehabilitation associated with mine infrastructure was undertaken during and after construction, with works carried out in the vicinity of the administration office, process plant facilities, wetlands and settling ponds.

Bendigo Mining

Bendigo Mining acquired 20% of GoldStone Resources Limited on 7 May 2010. GoldStone is an AIM-listed West African gold exploration company. GoldStone has a successful and experienced management team based in South Africa. The core management team of Jurie Wessels (CEO) and Dr Hendrik Schloemann (Exploration Director, ex-Harmony West Africa) have assembled a highly prospective package of properties in West Africa.

The Company’s key asset is the Homase project in the Ashanti Gold Belt in Ghana, where GoldStone may earn up to an 85% interest. The GoldStone public release on 21 April 2010 announced a 282,608 oz gold resource, estimated in accordance with JORC guidelines, beneath and along strike from the Homase main pit. This now abandoned pit was mined by AngloGold Ashanti in 2002 and 2003 during a time of low gold prices. The lease area is believed to have excellent exploration potential and is located some 15 km NE of AngloGold Ashanti’s Obuasi Gold Mine.

Other GoldStone assets include the Manso Amenfi licence in Ghana, which GoldStone believes is prospective as it lies along a trend of intense artisanal gold mining and in a similar belt of rocks to Perseus’s Ayanfuri gold deposit, located some 50 km to the northeast. The Company also has a large 471 km² exploration license in Senegal near the border with Guinea. The ground is to the south of Randgold’s licence containing the 3.4 Moz Masawa discovery and along trend from Sabodala (2.2 Moz), Yatela (2 Moz) and Sadiola (10 Moz) mines.