Newcrest commences gold production at Toguraci

Australian gold miner Newcrest Mining Limited reported Tuesday it had commenced gold production at the Toguraci mine on Halmahera Island, producing 23,105 ounces of gold during the Jan-March period of this year.

?The first gold was poured from Toguraci on 18 February,? Newcrest said in a report to the Australian Stock Exchange.

Newcrest said gold production was made at a cash cost of $241/oz and total cost of $297/oz. Ore was processed at a head grade of 19.94 gram per ton with a gold recovery of 97.6 percent. Mill throughput was 37 kilo tons.

Gold production is commenced by using former Gosowong processing facilities. Gosowong mine operations had been stopped due to reserves exhaustion.

The company also said drilling in the area continued to yield positive results at Kayu Manis and Kencana in the southern of Gosowong mine.

Newcrest said definition drilling on the Kayu Manis shoot is nearing completion. ?A resource estimate (on Kayu Manis) is expected to be completed during the next quarter,? Newcrest added.

Newcrest holds 82.5 percent equity in PT Nusa Halmahera Minerals, which runs the gold mines, while state miner PT Aneka Tambang Tbk, holds the remaining 17.5 percent. (robert)