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 June 31, 2011 released on Thursday.

Operation
Gosowong, Halmahera Island, N. Maluku (82.5%)

Gosowong?s June quarter performance was 136,343 ounces of gold at a cash cost of A$299 per ounce. This compares with the March quarter performance of 109,045 ounces of gold at a cash cost of A$351 per ounce.

Gold production increased 25% over the previous quarter due to the combined effect of record mill throughput, increased gold feed grades and higher associated recoveries.

Mining continued in the K1, K2 and K-Link orebodies with a higher proportion of mining in K2 resulting in an increased average feed grade for the quarter. Waste movement continued on the Gosowong open pit cutback with 2.5Mt moved during the quarter. Open pit production is expected to commence in the June quarter of the 2011/2012 financial year.

Site costs increased over the previous quarter associated with higher mine production and mill throughput. Lower unit cash costs reflect the increased gold production.

Project Development
The mine design for the development of a second underground mining front in the Toguraci area at Gosowong progressed successfully through the internal tollgate process during the quarter and the project now awaits completion of the Indonesian mining approval process.

Approved early works were completed during the quarter comprising road access, the establishment of the portal area and key infrastructure including security, water and power supply.

The project is well placed to deliver first production ore during the 2011/2012 financial year subject to the receipt of necessary permits.

Exploration
Development of an exploration decline to access the identified high grade shoots at Toguraci commenced during the quarter and the final phase of resource definition drilling was completed. Preparation of updated resource and reserve estimates are in progress.

Significant results include:
- BOD084 12m (9.3m) @ 13g/t Au from 116.2m and 2.7m (2.4m) @ 20g/t Au from 225.7m
- BOD088 1.9m (1.7m) @ 20g/t Au from 212.1m
- BOD089 10.7m (6.0m) @ 34g/t Au from 142.5m
- BOD092 2.2m (1.6m) @ 8.8g/t Au from 99.6m and 5.1m (4.3m) @ 6.7g/t Au from 295.6m
- BOD093 4.2m (3.2m)1 @ 10g/t Au from 173.6m
- TGD042 8.1m (5.8m) @ 13g/t Au from 285.2m
- TND143W 4.1m (2.0m) @ 55g/t Au from 172.9m
- TND148 1.8m (1.6m) @ 19g/t Au from 414.0m

Approximately 400 metres north of Toguraci, drill-hole NTD017 returned a high grade intercept of 3.6m @174g/t Au from 452.5 metres down-hole. This hole was drilled to follow up NTD012W (3.0m @ 8.7g/t Au and 2.2m @ 14g/t Au reported previously) and confirms the mineralisation remains open to the north. (end of edited excerpt)