The Company is committed to a significant exploration program that will seek to identify additional Mineral Reserves and Mineral Resources, which can be processed using the existing mill capacity, to extend mine life. In particular, the Company is committed to doing the work necessary to convert a portion of the current Measured and Indicated Mineral Resources of 890,000 oz of gold and Inferred Mineral Resources of 800,000 oz of gold into Mineral Reserves with additional drilling, which may result in a mine life that meets or exceeds what is forecasted in the Extended Mine Plan.
The objectives of the Plutonic Gold Operations exploration program are to increase the Mineral Resource base and convert Mineral Resources to Mineral Reserves by targeting areas from both underground and from the surface.
An annual exploration budget of approximately US$5-10 million is planned for 2017. Subject to the exploration results, this amount may be varied as required. A proportion of the exploration budget will be used to increase Inferred Mineral Resources (extensions to known Mineral Resources distal to the current Plutonic Gold Mine area).