Avocet says N.Sulawesi gold mine could commence production next year

UK-based miner Avocet Mining PLC said on Wednesday that its North Sulawesi gold mining project might come into production as early as 2004.

?The company is now proceeding to obtain all the necessary permits that are required to construct and operate the mine. A construction and mine management team is being assembled and the company has commenced discussion with various parties on financial package for the mine?s construction and working capital requirements. A positive outcome to this issue should allow North Lanut to come into production during 2004,? said the company in its news release.

Last June, the company announced the positive result of bankable feasibility study on North lanut gold project, the mine would produce about 50,000 ounces of gold per year for five years with pre-production capital costs estimated at US$11 million.

The North Lanut project is designed to be an open pit mine using dump leaching for the recovery of gold.

In 2002 Avocet completed the purchase from Newmont Mining Corporation of an 80 percent interest with respect to a 6th generation Contract of Work (CoW) in Indonesia. The CoW consisted of a 460 square mile exploration property in North Sulawesi. (alex)