Newcrest reports higher N. Maluku gold output

The following is an excerpt from Australian miner Newcrest Mining Corp.?s quarterly report for the three months ending Dec.31, 2010 released on Tuesday.

Gosowong, Halmahera Island, N. Maluku (82.5%)
Gosowong?s December quarter performance was 112,103 ounces of gold at a net cash cost of A$335 per ounce and a gross cash cost of A$357 per ounce. This compares with the September quarter performance of .105,727 ounces of gold at a net cash cost of A$306 per ounce and a gross cash cost of A$310 per ounce.

Gold production was 6% higher than the previous quarter due to increased mill throughput.

Mining continued in the KI, K-Link and K2 orebodies during the quarter. A movement of mudstone material in the K2 orebody blocked access to part of the mine during December separating two employees from the main mine workings. Mine production was stopped for several days while recovery operations were undertaken and resumed after the two isolated employees were reunited unharmed with their families. There was no impact on quarterly gold production as the mill continued to operate processing stockpiled ore.

Higher site costs include the recovery response to the mine blockage caused by the mudstone movement.

Higher unit cash costs include the Company?s commitment to a new 3 year regional development program recently agreed with the Regional and Provincial Governments.

Project Development
Preparations for a second underground mining front in the Toguraci area at Gosowong are progressing well. Portal development work has commenced for an exploration decline that will enable the gathering of geotechnical, geological and other information that is required before final planning and permitting processes.

Mining at Toguraci Underground is expected to commence during calendar year 2011 following finalisation of a forest lease agreement and a feasibility study amendment that incorporates Toguraci Mining resumed in the Gosowong open pit with the commencement of a cutback that will enable access to ore at the bottom of the pit. Production from the open pit is expected in financial year 2011/2012.

Exploration
Step out drilling north of Toguraci confirmed the presence of mineralisation between Toguraci and Tobobo with intercepts of 3m @ 8.7g/t Au from 376.3m and 2.2m @ 14g/tAu from 390.1m in NTD012W.

A new structure was also intersected to the south of Toguraci in BPD019 (2m @ 30 g/t Au). These results indicate that the Toguraci system remains open to the north and south of currently identified resources.

Other significant results include:
? BOD069 2.8m (2.8)2 @ 27g/t Au from 204.5m
? BOD070 1.8m (1.5)2 @ 65g/tAu from 104.0m
? TND121 1.5m (1.2)2 @ 33g/t Au from 72.2m and 3.8m (3.8)2 @ 11g/t Au from 269.5m
? TND123 1.2m (1.0)2 @ 100g/t Au from 296.2m and 8.6m (6.5)2 @ 15g/tAu, from 362.9m
? TND127 6.5m (5.0)2 @ 22g/t Au from 188.0m including 1.5m (1.2)2 @ 63g/t Au from 188.0m

In addition to drill programs in the Gosowong Goldfield area, target generation conducted in the regional Contract of Work identified several new prospective north and northwest trending structures in the Matat and Batu Api prospect areas. (end of edited excerpt)