Avocet reports N.Sulawesi gold production, exploration
Saturday, November 6 2010 - 01:36 AM WIB
North Lanut, North Sulawesi
Gold production at North Lanut rose 10 per cent compared with the previous quarter, due to increased leach pad availability allowing for higher ore tonnages to be processed. Grades were also improved as mining accessed higher grade areas at depth in the Rasik pits.
The initial low process recovery rate of 54 per cent reflects the fact that high ore tonnes were placed on the leach pad towards the end of the quarter, from which only a small proportion of gold had leached out by the end of September. The gold from this ore will continue to be recovered in the fourth quarter.
Higher gold production meant that cash cost per ounce was slightly below the previous quarter.North Lanut?s excellent safety record continues, with the operation having worked over 15 million lost time injury free hours.
Exploration
Exploration in South East Asia focused on advancing the Doup project in North Sulawesi and Seruyung project in East Kalimantan, with drilling commencing in August and September, respectively. Diamond drilling at Doup is focussed on infill drilling on the Panang zone where the metallurgy is simpler. The aim of this programme is to evaluate the continuity of higher-grade gold zones and facilitate an estimate of Measured and Indicated Mineral Resources. This will enable the estimation of Mineral Reserves and the first economic evaluation of the project.
At Seruyung, the Company has mobilised two diamond drill rigs to commence the first phase infill drilling programme of the Main Silica Cap zone, which forms the core of the project. This will allow the estimation of Inferred Mineral Resources and facilitate an understanding of the scope and scale of the project. (end of edited excerpt)
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Quarter ended 30 Sep 2010 Unaudited | Quarter ended 30 Jun 2010 Unaudited | 9 months ended 30 Sep 2010 Unaudited | 9 months ended 30 Sep 2009 Unaudited |
| Production Statistics | ||||
| Ore mined (tonnes) | 305,000 | 295,000 | 1,015,000 | 1,034,000 |
| Waste mined (tonnes) | 380,000 | 428,000 | 1,200,000 | 1,710,000 |
| Ore and waste mined (tonnes) | 685,000 | 723,000 | 2,215,000 | 2,744,000 |
| Ore processed (tonnes) | 368,000 | 267,000 | 900,000 | 916,000 |
| Average ore head grade (g/t Au) | 1.92 | 1.70 | 1.86 | 1.81 |
| Process recovery rate | 54% | 77% | 65% | 67% |
| Gold produced (ounces) | 12,311 | 11,184 | 34,865 | 35,529 |
| Cash cost (US$/oz) | ||||
| - mining | 329 | 343 | 334 | 270 |
| - processing | 177 | 172 | 168 | 120 |
| - royalties and overheads | 151 | 163 | 155 | 109 |
| Total cash cost (US$/oz) | 657 | 678 | 657 | 499 |