Avocet sees gold output from N. Sulawesi reach 80,000 oz next year

London-based gold mining Avocet Mining plc is expected that gold production from North Lanut mine in North Sulawesi will increase over the rest of this financial year to reach design capacity by year-end.

?It is feasible that gold production could reach 80,000 ounces next year at a cash cost under US$150/oz,? Avocet said Wednesday in its Interim Results for the six months ended September 30, 2004.

Construction of the North Lanut mine was completed over a month ahead of schedule and first gold pour on 7 October. Annual production from the mine is expected to average in excess of 50,000 ounces over the current five year mine life for the Riska deposit.

Avocet said the mine is also at an advanced stage of leasing a mining fleet that will allow it to reduce production costs compared to the use of a mining contractor as was assumed in the feasibility study.

Avocet added it had commenced exploration on other parts of its property position with the aims of adding reserves for North Lanut and identifying another project for future development.

According to the report, exploration activities in Indonesia consisted of diamond drilling at Talugon, near to the North Lanut mine, and detailed geology mapping at Bakan, Tembaga, North Sophia and East Tobongon prospects.

Avocet owns 80 percent interest in North Lanut gold project. (Robert)