"In total this meant the overall cash cost was $1,084 ($1,021 USD) per ounce and $190 ($179 USD) per ton - still developmental but materially improved over the same quarter last year of $280 ($264 USD) per ton and $2,833 ($2,669) per ounce cash costs. (Please see discussion on Non-GAAP financial measures within the MD and A for a detailed calculation and reconciliation of these figures to our GAAP financial statements). Note that 5,000 tons were mined at the Hinge that was not milled in the quarter and the above noted figures are calculated on milled tonnage only."

Also

"Dale Ginn, CEO noted that: "We are encouraged by our performance during the first half of 2010, though we recognize there is considerable need to improve production rates at the Rice Lake Mine. Our outstanding success in discovering new high grade gold deposits near surface such as the 007 has forced us to remain in a development mode longer than anticipated. We look forward to lower costs and higher volumes as the near surface zones become much more prevalent in our production mix going forward. We also anticipate additions and enhancements to our management team in order to focus more closely on our development and production growth."