Newcrest: Gosowong mine Q2 gold output down slightly

By Romel S. Gurky

ASX-listed Newcrest Mining Ltd said that gold production at its Gosowong mine in Halmahera, North Maluku Province, reached 122,103 ounces in the second quarter of this year, a slight 2.29 percent decline compared to the corresponding quarter of last year.

Compared to the first quarter, however, gold production during the second quarter was 62 percent higher at 75,312 ounces.

?Gold production was 62 percent higher than the previous quarter primarily due to an increase in ore availability after the commissioning of a dewatering pumping system and higher head grades at Toguraci. As a result of increased ore availability, mill throughput was higher than the previous quarter. Gold grades are expected to vary from quarter to quarter depending on the stope sequencing,? Newcrest said in a statement obtained Monday.

The company said that All-In Sustaining Cost (AISC) per ounce in the second quarter of this year was lower than the prior quarter primarily as a result of higher gold feed grades and lower sustaining capital expenditure.

Meanwhile, the application of a new exploration model and vectoring tools has been successful in identifying a number of new targets raising the potential for discoveries, the company said.

It further explained that during the quarter a Controlled Source Audio-frequency Magnetotellurics (CSAMT) survey was completed. Results from the CSAMT survey and aerial electro-magnetic (EM) survey (completed in prior quarter) have identified new structures undercover within 3km of the process plant and within the greater Contract of Work (CoW) that have coincident alteration and geochemistry. A ground Induced Polarisation (IP) survey and follow up drilling is planned.

Elsewhere, drilling targeting incremental growth adjacent to the existing underground operations at Toguraci and Kencana continued, Newcrest said.

Editing by Reiner Simanjuntak