Avocet reports slight decrease in H1 gold production

UK gold mining firm Avocet Mining reported on Wednesday that its gold production from North Lanut mine in North Sulawesi slightly decreased to 22,554 ounces during the first half of 2010 from 23,196 ounces in the same period last year.

?Production at North Lanut has remained steady and in line with expectations. Heavy rainfall in the early part of the year affected mine tonnages and delayed leachpad recovery, but operational improvements have mitigated this. Mining is currently from two pits, Rasik and Riska, which allows for greater flexibility in managing ore production,? it said.

?In addition, new leach pad areas are now available. This, combined with the introduction of segregated cells, allows different ore types to be treated separately, increasing recovery levels. Mining at Rasik is scheduled to reach higher grade areas at depth and gold production is expected to increase quarter on quarter. Full year production guidance is unchanged at 48,000 ounces.? (kanthi)

North Lanut Production

	3 months ended 31 March 2010	3 months ended 30 June 2010	6 months ended 30 June 2010	6 months ended 30 June 2009	12 months ended 31 December 2009
Production statistics
Ore mined (tonnes)	415,000	295,000	710,000	611,000	1,430,000
Waste mined (tonnes)	392,000	428,000	820,000	1,156,000	1,290,000
Ore and waste mined (tonnes)	807,000	723,000	1,530,000	1,767,000	3,720,000
Ore leached (tonnes)	265,000	267,000	532,000	582,000	1,282,000
Average ore head grade (g/t Au)	1.93	1.70	1.82	1.96	1.69
Process recovery rate	69%	77%	72%	63%	67%
Gold produced (ounces)	11,370	11,184	22,554	23,196	46,895
Cash costs (US$/oz)
- mining	330	343	336	269	289
- processing	155	172	163	119	137
- royalties and overheads	150	163	157	107	124
Total cash cost (US$/oz)	635	678	656	495	550