Avocet reports higher gold production from N. Sulawesi mine

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

North Lanut, North Sulawesi
North Lanut's gold production at 12,333 ounces was 4 per cent up on the previous quarter, reflecting the benefit of higher tonnes irrigated since March and also continuing efficiencies in the leaching process, including improved piping and pumping to allow an increase in active irrigation area, and improvements to increase stripping capacity.

During the quarter ore was sourced from the Riska pit and from the new Rasik pit. As expected, a higher proportion of material from Rasik meant that grades were lower than previously, but the more oxide nature of ore from this deposit, which leaches more easily, meant that the impact of lower grades was more than compensated by higher recoveries. Cash costs of US$507/oz were in line with the previous quarter of US$501/oz.

Production in the next two quarters is expected to continue at a rate of approximately 4,000 ounces per month.

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)