Newcrest on schedule to commence Toguraci gold production in December

Australian mining company Newcrest Mining Limited said it was stick to plan to commence gold dore production from its Toguraci prospect in Halmahera island, North Maluku by year-end.

The company said in its yearly report released Monday mine development had commenced with preliminary road access completed and pre-stripping of the mining area underway.

Newcrest said Toguraci mine contained 300,000 ounces of gold.

Toguraci was only 2 kilometers away from Gosowong mine, which will be closed down due to reserve depletion. Ore from Toguraci will be processed using Gosowong facilities.

Newcrest said in 2004, it would spend A$ 8 million on the project.

Meanwhile, the company said resource definition drilling has commenced on the Kencana Vein with a resource estimate expected to be completed in the third quarter of 2003/04.

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