Newcrest reports higher gold production from Halmahera mine

Australian miner Newcrest Mining Limited reported on Tuesday gold production from its Toguraci mine in Halmahera Island, North Maluku province reached 53,489 ounces during October-December 2005 quarter, increased sharply from 28,030 ounces in the previous quarter.

The company said the sharp increase was due to higher ore grade of 26.67 gpt, compared to 14.80 gpt in the previous quarter. The company process 64,300 tonnes of ore during the quarter, similar to the volume of ore processed previous quarter.

Cash cost during the quarter reduced to A$347 per ounce from $425 and total cost also reduced to $406 from $451 per ounce.

The company said mining of the higher ore grade pit significantly improved production resulting in lower unit cash costs.

The company also reported that development of nearby Kencana underground mine is progressing with first gold production expected in June quarter. The company said the underground mine has mineral resource of 2.1 million ounces and ore reserves of 1.3 million ounces.

Halmahera gold mine is operated by PT Nusa Halmahera Minerals, a joint venture company between Newcrest Mining Limited (82.5 percent) and PT Aneka Tambang (17.5 percent). (alex)