Avocet on track to commence N.Sulawesi gold production in 2004

UK gold miner Avocet Mining PLC said on Thursday the company is on track to commence gold production from its North Lanut mine in North Sulawesi in the second half of next year.

?Following the raising of ?10.2 million in September 2003, the company has proceeded with the construction of North Lanut project in Indonesia. The project remains on track for the commencement of gold production in the second half of calendar 2004,? said the company in its quarterly report.

North Lanut mine is designed to produce about 50,000 ounces of gold per year for five years with pre-production capital costs estimated at US$11 million. The project is designed to be an open pit mine using dump leaching for the recovery of gold.

In 2002 Avocet completed the purchase from Newmont Mining Corporation of an 80 percent interest with respect to a 6th generation Contract of Work (CoW) in Indonesia. The CoW consisted of a 460 square mile exploration property in North Sulawesi. (alex)