Newcrest conducts wall stability work to resume production

By Puspita Maylana Devi

ASX-listed Newcrest Mining Limited recently stated that wall stabilization work has commenced at its Gosowong mine, "and open pit production is likely to be significantly reduced for the rest of the financial year," the company said in a statement made available at the ASX.

As previously reported, mining in the Gosowong open pit was suspended in December due to weak wall stability adversely impacting production.

Despite the on going wall stability works, Newcrest also stated that ground stability issues in the Gosowong open pit and Kencana underground mine will result in total gold production from Gosowong coming in "below guidance for the full financial year at around 350,000 ounces."

Gosowong?s December 2012 quarter performance was 80,223 ounces of gold at a cash cost of A$653 per ounce. This compares with the September 2012 quarter performance of 81,090 ounces of gold at a cash cost of A$551 per ounce, while the average grade of ore feed in the December quarter was lower than in the September quarter.

Also at Gosowong, the discovery drilling program is now extensively focused on the area covered by the regional Contract of Work. Newcrest stated that recent target generation work has defined six high quality regional targets, but not stating the detail.

"Drill testing of these targets has commenced and will continue over the next two quarters," it said.

Previously, Newcrest state it has completed the sale of a 7.5% interest in PT Nusa Halmahera Minerals (NHM) during the December 2012 quarter to PT Aneka Tambang (Antam).

NHM is the incorporated joint venture company that owns the Gosowong operation.

Editing by Er Audy Zandri