The design for the proposed compact underground mine is currently nearing completion based on extraction of the resource using conventional long-hole open stope mining methods.

Based on the work completed to date, Cortona intends to utilise paste-fill for the stoped out areas. This will enable maximum extraction of the orebody and will result in a number of other economic efficiencies in terms of material and waste movement from underground, as well as environmental benefits by dramatically reducing the amount of tailings material required to be stored on the surface.

The Processing Plant design has been completed. The plant will utilise three-stage crushing and coarse grinding with approximately 50% of the gold to be recovered by gravity and the balance via flotation to produce a high-grade gold concentrate grading between 20 and 30g/t Au.

The Environmental Assessment for the Dargues Reef Project has been completed and lodged with the Department of Planning for review. This review is expected to be completed by late August, with the Environmental Assessment submitted for public exhibition in September and then be submitted for Ministerial approval.

A Mining Lease Application has also been lodged, with all necessary approvals on track to be completed by the end of 2010. Subject to timely completion of financing and commencement of project development, this should enable Cortona to maintain its planned timetable of commencing gold production by Q4 2011.

Drilling at Dargues reef continues, although inclement weather and technical issues have hampered recent drill rates. Two drilling rigs are currently on site targeting depth extensions to the Main and Bonanza lodes. The rigs are now drilling from the north for the first time, which has the potential to discover additional parallel lodes within development range of the proposed mine. Following resource and exploration drilling at the Dargues Reef Gold Project, the rigs are expected to be relocated to follow-up some of the exciting regional exploration targets within Cortona’s Majors Creek Gold Project.

Cortona held a community consultation session over two days at the Community Hall on Friday and Saturday 13th and 14th August.

Large format maps, scale drawings and panels were on exhibition illustrating much of the environmental impact study currently being reviewed by the Department of Planning for the planned mining operation, with staff on hand to answer questions.