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Fourth Quarter Activities Report

Document date:  Thu 30 Jul 1998
Published:  Thu 30 Jul 1998 00:00:00
Document No:  139621
Document part:  A
Market Flag:  Y
Classification: 

GREAT CENTRAL MINES LIMITED                   1998-07-30  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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REPORT FOR THE QUARTER ENDED 30 JUNE 1998

OVERVIEW

OPERATIONS AND DEVELOPMENT

Gold production for the year was 649,322 ounces an increase of 49% 
compared with 436,209 ounces for the previous twelve months. Cash 
costs for the year were A$301 per ounce compared with a cash operating
cost of A$277 per ounce previously.

Gold production for the quarter totalled 167,613 ounces at a cash cost
of $313 per ounce. Gold production was adversely affected by rain at 
Jundee-Nimary and at Bronzewing by the closure of the underground 
production area during May 1998 after a fatality. Production has 
returned to normal at Bronzewing and at Jundee-Nimary, Barton Deeps is
contributing with very high grade ore.

Forecast production for 1998-99 is at least 750,000 ounces at $300 per
ounce.

RESOURCES AND RESERVES

The Company's mineral resources including ore reserves are 11.95 
million ounces of gold, an increase of 894,000 ounces, comprising 88 
million tonnes at 4.2 grams per tonne ("g/t") gold and proved and 
probable ore reserves are 6.1 million ounces, comprising 38 million 
tonnes at 4.9 g/t gold. The mineral resources and ore reserves have 
been reviewed and audited by independent expert, Dr Spero Carras of 
Carras Mining Pty Ltd.

Drilling of the Nimary Deeps has outlined an initial high grade 
inferred mineral resource of 1.1 million ounces, comprising 2.7 
million tonnes at 12.6 g/t gold in several lodes below NIM3, NIM4 and 
NIM6/North West. This mineral resource provides the potential for 
further underground development in addition to Barton Deeps.

The Jundee-Nimary open pit ore reserves have been re-optimised across 
the previous lease boundary and take into account additional drilling.
This resulted in an increase in the head grade of the open pit ore 
reserves to 4.6 g/t gold, up from 4.0 g/t gold, and open pit reserves 
at current production rates will last for at least 3 years.

RECONCILIATION

Reconciliation between production and unfactored reserves at 
Bronzewing continued to be in excess of 30%. Underground mining has to
date produced 2.3 million tonnes of ore at 6.7g/t gold compared with 
the reserve grade of 4.4 g/t gold. Production from the Jundee-Nimary 
open pits during the quarter were 24% positive while production has 
maintained a life of mine positive reconciliation of 13% to reserves. 
Reconciliation of Barton Deeps production with reserves has indicated 
a high grade parcel of ore estimated to be 12 g/t gold to have in fact
returned a grade of 48 g/t gold.

EXPLORATION

Nimary Deeps drilling results include 14 metres at 14.7 g/t gold from 
a depth of 244 metres. The Jundee Mine Sequence has been identified to
extend for some 23 kilometres south of Jundee and is 1 to 4 kilometres
wide. Broad spaced rotary air blast ("RAB") drilling to test the mine 
sequence has commenced.

FINANCE

Gold sales for the quarter were 166,530 ounces at an average realised 
price of $575 per ounce, for a year to date total of 647,612 ounces at
an average realised price of $581 per ounce.

During the quarter the Company acquired a 19.5% holding in Australian 
Resources Ltd for A$18.4 million. Pursuant to a financing deal, the 
Company sold 17.5% of the 19.5% holding to CIBC. However, the Company 
has the right to re-acquire this interest under a put and call option.
Voting rights remain with the Company.

Total committed and hedged ounces increased to 7,654,891 at an average
A$579 per ounce.

J I Gutnick
CHAIRMAN AND MANAGING DIRECTOR

MORE TO FOLLOW

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