Newcrest reports encouraging results in N. Maluku exploration

Australian miner Newcrest Mining Limited said on Thursday during Oct-Dec quarter of 2002, its gold production from Gosowong area in North Maluku had reached 11,743 ounces, slightly lower from previous quarter of 12,116 ounces.

The company said its production in the quarter was made at a cash cost of US$529 per ounce and a total cost of US$540 per ounce.

The company further said that its exploration in Gosowong had produced good results with a drill hole designed to test an extension of the original Gosowong structure intersecting both the targeted extension and a new structure.

The new structure returned a result of 7.25m @29g/t Au and 30g/t Ag from 158m including 1.0m @140g/t Au and 130g/t Ag from 162.5m.

?This new intersection (DSD5) is one km from the original Gosowong pit and within the mining leasehold. Results for the targeted intersection are not complete,? said the company, adding that the additional drilling rigs would be used to determine the extent of the high-grade mineralisation.

Newcrest is still struggling to get permission from Indonesian government to mine deposit at Toguraci, which is located in protected forest area. The deposit area is close to its current mining location.

Unless given permission, Newcrest will have to close its current Gosowong mine this year due to reserve depletion. (alex)