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20 Independence Group NL

OPERATIONAL READINESS

During the latter part of FY16, emphasis

was placed on developing operational

readiness plans, with the ultimate goal

of achieving a smooth transition from

construction into operations. Plans are

progressing well, with the recruitment

of the senior operational management

team now complete.

Priority has also been placed on the

development and education of safe

systems of work and management

systems.

Training and recruitment of the

operational workforce commenced

mid-year and is planned for completion

to coincide with the commissioning of

the concentrator in the December 2016

quarter.

Underground development has

proceeded as planned, with the focus

on capital development to advance

the infrastructure required to achieve

sustainable production. For FY16, 5.5km

of underground development was

achieved.

The contract for the underground works

was awarded to Barminco Holdings

Limited and their performance to date

has enabled mine development to

remain ahead of the Feasibility Study

plan. Delivery of first ore to the surface

was announced in late June 2016 and

work has continued on the development

of the decline, stope access and

infrastructure for ventilation dewatering

and other service.