Avocet says N. Sulawesi goldmine could commence production in 2004

UK based gold miner Avocet Mining PLC announced that it had completed pre-feasibility studies on its North Lanut gold prospect in North Sulawesi and said the results were sufficiently encouraging for the company to proceed to full feasibility studies and the company expected to bring the project into production in 2004.

?Studies focused on bringing the 800,000 oz mineral resource base estimated by Newmont to a status acceptable under international standards, and on confirming that portion of the resource that would be amenable to low cost heap leaching of uncrushed ore, known as dump leaching,? said Chairman Nigel McNair Scott earlier this week.

Scott said that independently verified results to date indicated that one deposit, Riska, contained a mineral resource of 468,000 ounces of gold at a grade of 1.4 g/t. Approximately 85 percent of this resource could be dump leached with an average gold recovery rate of more than 70 percent and would be mineable at a low waste:ore ratio of 1:1. These results do not include the latest data from additional drill holes and metallurgical test work.

Scott expected that North Lanut?s mineable reserves would be expanded with the latest exploration and metallurgical data.

"We expect that North Lanut?s mineable reserves will be expanded with the latest exploration and metallurgical data. Our objective is to place the project in production in early 2004. Although preliminary, our feasibility results indicate the potential for the project to be developed at a capital cost below US$10 million, and to produce over 50,000 ounces per year of gold at a total cash cost below US$150 per ounce," he said.

In March 2002 Avocet announced the acquisition of a 460 square mile exploration property from Newmont Mining Corporation. Avocet owns 80 percent stake in the prospect, while local company PT. Lebong Tandai controlled by Jusuf Merukh has the remaining 20 percent. (alex)