Avocet reports higher gold production from N. Sulawesi mine

UK gold miner Avocet Mining Plc announced on Wednesday that third quarter gold production to December 2007 from its North Lanut mine in North Sulawesi, Indonesia increased by 87 percent to 20,995 ounces from the same period last year.

Cash costs of US$276/oz were 29% lower than the same period last year. North Lanut continued to benefit from the operating efficiencies and significantly higher grades reported at the half year, it said

?Higher production more than compensated for steep rises in diesel and reagent costs as well as an increase in lime usage required to control pH while processing a higher proportion of transitional ore,? the company said.

The company has 80 percent stake in North Lanut mine. (denny)