I interpret this to mean a level of production that results in a profit to the business as a whole, not just cash flow positive from mining operations

Until they transition the 007 into commercial production and account for it like that of the Hinge, any gold produced through development and the bulk sample shows up as commissining ounces and is a sunk cost for the 2010 financials and all the gold produced doesn't hit the bottom line until this year. Technically they can say they produced 40k ounces all they like even if they produced considerably more developing the 007. I hope we get a nice surprise.

"Of note during the quarter is the recovery of 5,502 ounces of gold on which revenue is not recognized. These commissioning ounces are recorded as a reduction to the capitalized value of the Hinge mineral property; this translates to a dollar amount of $5,885,434 – when commercial production is declared on the Hinge, these ounces will be considered production and be recorded as revenue which would have a material impact on the reported performance of the Company."