Avocet reports higher gold production from N. Sulawesi mine

The following is an excerpt from Avocet Mining Plc?s first quarter report, which was released on Friday.

North Lanut, North Sulawesi
North Lanut's trend of quarterly production and cash cost improvements continued in Q1 FY2010. Gold production at 11,899 ounces was 5% up on the previous quarter and was the highest for more than a year. The improvement reflected higher grades and an increase in tonnes processed as the operation benefited from the new leach pad (HLP3A) which was completed in March 2009. Improved leach pad management continued and recovery was well above the average achieved in full year FY2009, although timing of cell irrigation meant that recovery for the quarter was lower than in the previous quarter. The full benefit of higher tonnes irrigated since March will therefore be seen in Q2 FY2010.

Cash costs of US$501/oz were broadly in line with Q4 FY2009 of US$488/oz and lower than the previous three quarters. The slight increase compared with Q4 FY2009 reflected a full quarter of production at the new Rasik and Effendi pits in addition to the Riska pit.

Background to Operation
North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 220,000 ounces since it was commissioned in 2004. Avocet purchased an 80 per cent interest in PT Avocet Bolaang Mongondow ("PT ABM"), an Indonesian company holding a 6th generation Contract of Work ("CoW"), from Newmont Mining Corporation in 2002. North Lanut is located within the CoW, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. An Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent. The Company has a number of other advanced development and exploration projects in Indonesia. (end of excerpt)