Avocet reports N. Sulawesi gold production

UK miner Avocet Mining reported on Wednesday its March-September 2005 gold production from North Lanut mine in North sulawesi reached 25,740 ounces from 1.34 million tones of ore and waste mined. Total cash cost was reported at US$191 per ounce.

North Lanut commenced gold production October 2004.

The company said since the start of the year North Lanut has overcome its start-up problems and is now operating at design capacity of 50,000 ounces PA cash costs at below US$200/oz.

The company also reported exploration activities in Indonesia have included drilling of extensions to the Riska orebody at the North Lanut mine. These extensions, which were uncovered during mining will extend the mine life of 5 years, said the company.

The company said it would revise the mine plan to add the resources at Effendi where it has previously reported 118,000 ounces of gold.

The company said recent drilling results from the Bakan prospects have been particularly

encouraging since their geology is similar to the area around North Lanut.

?We are confident that the Bakan district will exceed our initial target of a 500,000 ounce resource and we have initiated a second phase drilling campaign to further evaluate these resources in order to bring them to a pre-feasibility development status in 2006,? said the company.

Avocet has 80 percent stake in North Lanut mine. (alex)