The Rice Lake Mine continues to develop and produce from the 98, 98 FW and RL East veins at the eastern ends of the 26 and 28 levels. Slashing and modernization of the 26 level (4,000 ft) continued in order to provide fully mechanized access for mining and haulage as well as to provide drill platforms for the exploration of the potential down-dip extensions of the Hinge, L10 and 007 zones at depth.

Development at the Hinge Mine continued with the main decline, diamond drill platforms and initial development towards the newly discovered L4 and L10 zones. The 007 zone was accessed from the Hinge Mine during the quarter with initial bulk sampling/sill development commencing and continuing throughout the remainder of the year.

Major capital projects included:

• Power upgrade and extension of transmission lines to the Hinge and 007 portals.

• Commenced construction of new central maintenance facility.

• Expansion of camp and kitchen facilities.

A total of 50,375 meters (165,270 ft) of diamond drilling were completed with 23,433 meters (76,879 ft) originating from underground and 26,942 meters (88,391 ft) from surface exploration. Underground drilling at the Hinge Mine remains focused on the discovery and delineation of the L4 and L10 zones which exhibit robust widths and grade below and in close proximity to the Hinge mine workings.

Rice Lake Mine exploration drilling is concentrating on finding extensions to the Hinge, L10 and 007 zones between 4,000 and 4,500 feet depths in close proximity to the 26 and 28 Level mine workings. This target area is approximately 1,000 meters down dip and below the lowest drill intercepts of the Hinge, L10 and 007 zones, initial results from this area are expected shortly. Surface drilling focused on the 007 and Emperor Zones as well as numerous new targets within a 5 km radius of the Rice Lake Mine. Recent drilling located approximately 150 meters east of the known limits of the 007 zone (between 007 and Emperor) zones has intersected a widely mineralized zone (approx 12 meters) containing quartz veining with visible gold throughout at 300 meters in depth. This intersection is highly encouraging as it may represent a significant extension to the 007 zone, Emperor zone or both. ..........There are mentions on other releases, one has to sometimes read between the lines. Traps7