"Calculated production costs were higher than previous quarters primarily due to the mill shutdown." "The cost per ton of ore for mining and processing are expected to decrease significantly in subsequent quarters and will more closely reflect the Company's true cost and production profile. Decreases in mining and processing cost per ton of ore will be realized from the mining of newer, near surface deposits in the Hinge, L10 and 007 zones as well as through increased average throughput rates." 2012 Guidance: Production of between 95,000 and 105,000 ounces of gold. Cash Costs: $700 - $800 per ounce of gold. Exploration: In excess of 250,000 metres of diamond drilling.