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Millennium Minerals' Is Australia's Newest Gold Producer

Millennium Minerals (ASX: MOY) is now Australia's newest gold producer after the company completed its maiden gold pour from the Nullagine Gold Mine in the East Pilbara District of Western Australia.

The milestone gold pour marked the successful completion of the commissioning of the process facilities.

Brian Rear, chief executive officer, commented: "The company's first gold pour is a very significant achievement marking our transition to Australia's newest gold producer.

"I would like to thank our dedicated employees and our contractors who have delivered a functioning mine and production facility in less than 12 months site activity to budget and on time, an exceptional effort.

"I would also thank our shareholders and our financiers for their strong support and providing the company with the financial backing to achieve our objectives. We are now focused on maintaining continuous operation of the plant and achieving our planned production objectives from October onwards".

Nullagine currently hosts a 1.33 million ounce gold resource contained within 7 deposits on granted mining leases, with the largest deposit known as Golden Eagle located 10 kilometres south of the township of Nullagine. Golden Eagle contains 62% of the total resource.


Millennium's share price has recently moved in line with the run up to production - and now with the successful first gold pour - the company has become a revenue earner with a very strong production and cash generating profile.

Average gold output is planned at 72,000 ounces per annum at a site cash cost of $756 per ounce. Proactive Investors could see Millennium increasing production to 100,000 ounces per annum from all deposits based on studies underway.

Millennium is low geared with total debt of A$53 million though a large portion of this is expected to be repaid with proceeds of about A$45 million from the January 2013 exercise of 1.5 billion options priced at A$0.03 each.

With a forecast EBITDA of $773 million and a project IRR of 40%, the projects economics still indicate that Millennium is undervalued relative to its peers.

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