Millennium Minerals Limited report that it has exceeded its full-year 2016 gold production guidance after producing 20,381 oz of gold during the December quarter at its Nullagine Gold Project (Project or Nullagine) in WA. This gold output took production for the full year to 86,325 oz, beating the year's guidance range of 80,000 oz - 85,000 oz. All-in sustaining costs were $1,219/oz for the Quarter and $1,213/oz for the full year, which was within the Fiscal Year 2016 guidance range of $1,180/oz-$1,220/oz. The strong production and margins saw Millennium generate free operating cashflow of $11.4 million for the quarter. This enabled the company to invest $4.2 million in exploration drilling, $4.9 million on expansionary capital expenditure inclusive of a new tailings storage facility for current and future production and $1.2 million in rehabilitation activities. Despite this substantial investment in the growth of the Project, Millennium increased its cash and cash equivalents to $28.4 million at the end of the Quarter. The company remains debt-free. During 2016, Millennium continued to generate outstanding exploration results at Nullagine as part of the ongoing drilling campaign aimed at growing the Project's gold inventory and mine life Given the success of the exploration program and its strong potential to grow the mine life, Millennium increased its exploration budget twice during the year. The company invested a total of $13.9 million in exploration during 2016 with similar expenditure now anticipated for 2017. During the quarter, the company announced that Ore Reserves at Nullagine had increased to 184,300 oz and Mineral Resources had risen to 1.2 M oz (ASX Release 27 October 2016). Importantly, around 75% of the stated Mineral Resource base is in the Measured and Indicated category.