Avocet?s N. Sulawesi gold mine delayed by permitting process

UK mining firm Avocet Mining PLC reported on Wednesday construction of its Bakan gold project in North Sulawesi would be delayed to beyond 2009 due to continuing delays to the permitting process.

The company initially expected the mine commence production in 2009.

?The technical aspects of the project remain robust and the feasibility study remains close to completion pending all permitting approvals,? the company said.

The Bakan project is located in Mongondow concession, where the company?s already -operating mine called North Lanut is also located.

The mine, which has 518,000 ounces of gold resources, is expected to produce 50,000 ounces of gold per annum.

Meanwhile, the company also reported that it was streamlining exploration effort by focusing on three prospects that hold the most potential to become new mines. These include the Doup and Tanoyan projects in North Sulawesi and Seruyung project in Kalimantan.

According to the company, the three prospects have potential for more than one million ounces of resource each.

First phases of drilling have been completed at Doup and Tanoyan with results that have met or exceeded internal expectations. This has allowed for follow up work on both projects.

At Doup the company will complete a drilling programme with the aim of generating an Inferred JORC resource before the end of the financial year.

At Tanoyan a single drill programme is ongoing to explore for higher grades at depth following initial positive results that were announced on 2 July 2008.

Successful due diligence was completed on the Seruyung project during the half year and a drill programme has commenced with the objective of testing and expanding the resource that previous operators have quoted as in excess of 300,000 ounces of gold, the company said.(denny)