Newcrest reports N. Maluku gold output, exploration
Thursday, July 22 2010 - 01:49 AM WIB
Gosowong, Halmahera Island, N. Maluku (82.5%)
Gosowong?s June quarter performance was a record 147,386 ounces of gold at a gross cash cost of A$269 per ounce and a net cash cost of A$267 per ounce. This compares with the March quarter performance of 112,883 ounces of gold at a gross and net cash cost of A$282 per ounce.
Gold production increased 31% due to significantly higher feed grades and increased mill throughput. A gold recovery rate exceeding 95% was maintained for the fourth consecutive quarter.
Mining continued in the KI, K2 and K Link orebodies and mine production increased 7% over the previous quarter. Development continued in the K Link and K2 orebodies.
Unit cash costs were lower than the previous quarter reflecting increased gold production, partially offset by the foreign exchange impact of a stronger US dollar.
Project Development
The Gosowong Expansion Project remains on schedule and under budgeted expenditure with the main process plant and mine development works now substantially complete. Commissioning activities have commenced and work on site continues to focus on ensuring a smooth handover to operations.
Exploration
At Gosowong, resource definition drilling continued at Toguraci during the quarter to define areas of high grade mineralisation and confirm continuity along the Damar, Yahut and Kayu Manis structures. Significant results on the Yahut structure include:
TND069: 5.9m (5.3m)3 @ 30g/t Au from 206m
TND072: 3.5m (2.5m)3 @ 25g/t Au from 218m
TND085: 3.0m (3.0m)3 @ 23g/t Au from 328m
TND086: 3.3m (3.0m)3 @ 91g/t Au from 193m
TND094: 6.1m (5.8m)3 @ 56g/t Au from 190m
TND103: 16.0m (13.0m)3 @ 48g/t Au from 233m
TND107: 5.4m (5.4m)3 @ 20g/t Au from 259m
Initial resource estimates for Damar and Yahut are currently being prepared and are expected to be completed during the September quarter. (end of excerpt)