"The Company experienced an alarming attack on the 15th and 16th May that targeted our Xiang Lu（湘魯礦場）(eastern mine site) and the Bao Mu Yuan（抱木園）Plant. Fifty or more robbers broke into the mine sites and raided high-grade ore/concentrate and threatened staff. On the 17th May, CGM's Chinese Joint Venture Company, Hunan Westralian Mining Co.（湖南西澳礦業有限公司）, Ltd, decided to temporarily close the Xiang Lu mine site for the safety and wellbeing of the Company's Western and Chinese workers and to avoid further theft of high-grade ore.
.... Prior to this incident the Company has been impacted by small scale skirmishes that have been dealt with by internal security and local police.
In the period under review, these have resulted in the closure of the Xiao Chong Zi（小冲子） Plant, together with the Zheng Jia Shan（張家山礦場） and Jiu Fa（久發礦場） mines. This incident however represents a deterioration of security due to the number of robbers involved, the use of weapons and the physical and verbal threats to staff. It all appeared to be well co-ordinated and organised, with the objective of stealing the high-grade ore. Currently the Company is assessing the loss which is approximately 5 tonnes of high-grade ore (>1000 g/t) from the Xiang Lu mine site. It is difficult at this time to quantify the fine ore stolen from the Bao Mu Yuan Plant. The Company was fortunate there were no injuries to our workers.