Avocet reports decreased gold production from N. Sulawesi mine

UK miner Avocet Mining plc reported on Wednesday that January-March 2007 quarter gold production from North Lanut mine in North Sulawesi Indonesia amounted to 13,475 ounces versus same last year?s same quarter production of 13,703 ounces, bringing total production for the April 2006-March 2007 financial year to 48,170 ounces versus 54,520 ounces a year earlier.

Full year cash cost was US$354/ oz versus $201/oz a year earlier, the company said. The increase in cash cost was due to operational difficulties during rainy season in the fisrt half of the year combined with increased diesel and reagent prices, it said.

The company also reported a total of 16.87 million tonnes of Measured, Indicated and Inferred Mineral Resource averaging 0.96 g/t Au containing 518,000 ounces of gold in using a cut-off grade of 0.3 g/t Au at Bakan mine, which is located close to North Lanut. Resource upgrade was made following completion of over 16,500 metres of infill diamond drilling.

The company has 80 percent stake in North Lanut mine.

Meanwhile, the company also reported plan to drill the Mangkaluku gold prospect in South Sulawesi before the end of July this year. A drilling program at the Idenburg gold property in West Papua has recently been completed and the results of this are currently under review the company said.(alex)