Newcrest reports higher gold production from N. Maluku mine

Australian miner Newcrest Mining Limited reported on Tuesday that gold production from its Gosowong mine in Halmahera island, North Maluku reached 101,929 ounces in March 2008 quarter, higher last year's same quarter production of 78,211 ounces .

The higher in production was due to increased grades and higher mill throughput resulting from a plant de-bottlenecking project, the company said.

The company also said that the feasibility study for the Kencana K2-K Link extension project has commenced. Development of the K Link decline commenced and equipment for the K2-K Link extension project began to arrive on site.K2-K Link is part of the Kencana underground mine that the company is currently developing, which is located near the current Gosowong mine.

Meanwhile, Resource definition drilling continued to upgrade K Link, returning intersections of 9.4m @ 321g/t Au and 7.2m @ 97g/t Au. Resource and reserve estimates at Kencana K2 and K Link deposits are being updated following definition drilling that upgraded these deposits.

During the quarter, the company continued exploration drilling in the Gosowong district. Drilling also commenced 6km northeast of Gosowong at Batu Api where epithermal veining is being targeted. (denny)