The mine experienced significant metallurgical recovery problems over the last two quarters due to ore characteristics in one of the ore zones and to water quality;Over the current quarter, gold recovery averaged only 69% and at the same time, ore grades were lowered to an average of 2.01 g/t;…As a result of the above, the Company only produced 3,900 equivalent ounces (“EqOz”) of gold;We have fixed the recovery problems as of mid October and gold recovery has subsequently improved to over 75%;November production is estimated at 1,598 EqOz at a grade of 2.37 g/t of gold and 17 g/t of silver with recoveries of 75% and 55%, respectively, on over 25,300 tonnes of ore;As a result of the above issues, mined ore revenues were only $6.5 million, compared to $10.6 million in mined ore revenues during the comparative prior year period.Mine operating cash costs were $1,073EqOz compared to $548EqOz in the comparative period and $724EqOz for the prior fiscal year ended July 31, 2012, due mainly to lower metal production and to higher mine preparation and exploration costs coupled with generally higher global price increases in consumables used in gold production;Earnings from mining operations were $1.25 million compared to $7.32 million in the comparative prior year period.Other total expenses of $1,597 include financing costs of $427, management fees and salaries of $455 and deferred income tax expense of $311. Included in these expenses are $266 of non-cash share based compensation expense;Loss for the period was $346 compared to earnings of $3.2 million during the comparative prior year period. Basic and diluted loss per share was $0.0, compared to $0.03 and $0.02, respectively, in the comparative period in the previous year;Cash flows from operations were $2.0 million, compared to $6.0 million during the comparative prior year period. Cash decreased to $1.7 million at October 31, 2012 after investing $838 in mine development, plant and assets and repaying $2.8 million of the loan;“The Company has endured a difficult few months of poor mine production due to production issues which have largely been resolved. We expect to return to historical production levels with improved recovery and ore grade over the next few quarters and to improve cash flows so as to pursue our exploration objectives with a view to finding more reserves, as previously stated,” said Robert Eadie, Executive Chairman and CEO of the Company.