Avocet ups hurdles for Indonesian gold exploration portfolio

UK gold mining firm Avocet Mining PLc reported on Wednesday that it was assessing if its Indonesian exploration assets are meeting the Company?s raised internal hurdle rates and refined exploration portfolio criteria.

?Work continues on Doup and Seruyung to assess whether these projects have the scale and economics to meet the Company?s development criteria,? the Company said. Doup prospect is located in North Sulawesi, near its producing North Lanut mine, while Seruyung is located in East Kalimantan.

The Company said scoping and metallurgical works is ongoing in Doup, targeting 2 million ounces of resources and 100,000 per annum mine, while it was targeting 500,000 ounces of resources and 50,000 ounces per annum mine in Seruyung.

Avocet also reported that it took the decision to impair US$10.5 million of capitalised exploration costs from projects mainly in Indonesia that it no longer intends to actively develop.

The Company?s North Lanut mine produced 35,600 ounces of gold in the nine months ended December 31, 2009, up from 29,700 ounces in the same period of 2008. It also reported that its Bakan development project, which is located in the same tenement as North Lanut is still awaiting for permit from Ministry of Forestry. Bakan is targeting 50,000 ounces per annum mine from 500,000 ounces of resources. (alex)