Newcrest report N. Maluku gold production, exploration
Thursday, January 28 2010 - 02:34 AM WIB
Gosowong Indonesia
Gosowong?s December quarter performance was 91,288 ounces of gold at a gross cash cost of A$329 per ounce. This compares with the September quarter performance of 90,968 ounces of gold at a gross cash cost of A$337 per ounce.
Gold production was marginally higher due to higher mill throughput being partially offset by a slightly lower grade.
Mining continued in both the K1 and K2 orebodies during the quarter, Mine production was 27% higher than the previous quarter due to the establishment of new production areas. Access to higher grade zones was achieved late in the quarter.
Optimisation of the processing plant continued with increased gold recovery and higher throughput rates achieved.
Quarterly unit cash costs declined due to the impact of the appreciation of AUD:USD exchange rate on the USD cost base. This impact was partly offset by higher diesel prices and freight costs.
PROJECT DEVELOPMENT
The Gosowong Expansion Project is on schedule and under budget with 67% of total planned expenditure committed. Civil and structural construction work commenced and is being co-ordinated around operational requirements. Critical capital equipment deliveries are on track with some ahead of schedule.
Mine development is on schedule reaching the K2 ventilation shaft breakthrough zone at the end of December.
Mill optimisation work continued during the quarter resulting in further throughput and recovery improvements.
The total project capital expenditure forecast remains lower than the original estimate as a result of lower achieved equipment prices.
EXPLORATION
Gosowong (82.5%)
At Gosowong, drilling to the north of the previously mined Toguraci open pit confirmed the extension of the previously reported Damar and Yahut mineralisation.
Encouraging assay results have increased the potential for a second mining front within the Toguraci corridor.
At Damar, 18 holes were completed during the quarter with significant intercepts including:
?TNDO30: 5m (2.6m)1 @ 7.4g/tAu from 217.3m
?TNDO31: 9.7m (7.0m)1 @ 80g/t Au from 328.7m
?TNDO32: 9.45m (3.2m)1 @ 45g/t Au from 252.3m
?TNDO35: 3.9m (2.6m)1 @ 140g/t Au from 282.4m
?TNDO38: 5.1m (3.9m)1 @ 45g/tAu from 342.4m
?TNDO45: 9.1m (3.7m)1 @ 10g/t Au from 262.9m
These results increased the high grade zone. Resource definition drilling is ongoing.
Drilling at Yahut, 150m west of Damar, confirmed the continuity of the mineralisation intersected in TNDO13 (8.2m (1.3)1@24g/t Au) 100m to the north and south. Follow-up drilling is planned over the coming months to define the dimensions of this mineralisation and test the gold anomalous quartz veining intersected over a 400m strike.(end of excerpt)