Also we have placed the 2012 second quarter MD&A and financials on our website in the investor stage under financial reporting. I would like to now turn the call over to Neil McMillan, President and CEO for comments and then we will go to questions.
Thanks very much, Marc and thanks everybody for taking the time to sit in on the call. I am looking forward to giving you an update on the second quarter, a bit of a forward looking outlook for the balance of the year and then answering questions.
If you have had a chance to go through the numbers for the second quarter, you would note that our production of 12,166 ounces of gold, we actually produced a bit more than that, but those ounces sold is up substantially over the first quarter. Slightly below our internal forecast, most of that grade related, some tonnage, but it did generate a net profit of $700,000 in the company.
Our cash costs while they did decrease are still higher than we are forecasting going forward and they are a result of a decreased grade in the second quarter production. I can tell you that over the balance of the year, we expect our cash operating cost to come down into the mid-900s, so that would imply that we expect to be under 900 for the second half of the year.
We also stepped out and staked an additional 30,000 acres adjacent to our Amisk Gold Project during the quarter. That’s a reflection of our confidence in the geological potential of that project and questions about that can be directed to Brian Skanderbeg, our VP of Exploration after I have done the call.
We continue to run three rigs at the Madsen Project. Two of them are operating underground from the 16th level and there are 24 levels in the mine. Those two rigs are pursuing down plunge extensions of the high grade number 8 zone and we have one surface rig that is doing a lone test folds to generate information about the down plunge continuity of the original ore body, the Austin and McVeigh. We only budgeted three holes there and that surface rig will be done here in the next week. We also plan to provide a press release update on our year-to-date progress at Madsen. We will do that in the third quarter as well.