Newcrest reports N. Maluku gold output, exploration

The following is an excerpt from Australian miner Newcrest Mining Corp.?s quarterly report for the three months ending September 30, 2011 released on Thursday.

Operation

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

Gosowong?s September quarter performance was 79,798 ounces of gold at a cash cost of A$508 per ounce. This compares with the June quarter performance of 136,343 ounces of gold at a cash cost of A$299 per ounce.

Gold production was 41% lower than the previous quarter due to the expected lower gold feed grade and lower mill throughput. Gold recoveries were consistent with the previous quarter. Lower mill throughput for the quarter was associated with a plant shutdown with permitting causing a further delay.

Mining continued in the K1, K2 and K-Link orebodies with a lower proportion of mining in K2 resulting in a lower average feed grade for the quarter. Waste movement continued on the Gosowong open pit cutback with 2.5Mt moved during the quarter.

Production from the open pit is expected during the June 2012 quarter. Total cash costs were slightly lower than the previous quarter reflecting lower royalties associated with lower production. Unit cash costs were higher as a result of the lower gold production.

Exploration

The Gosowong exploration program is focussed on identifying additional mining fronts within the Toguraci Corridor and discovering new systems within the regional Contract of Work (CoW).

Within the Toguraci Corridor, development of an exploration decline to access the identified high grade shoots at Toguraci progressed to schedule, intersecting ore within the Midas structure late in the quarter.

Follow up drilling to the significant intercept of NTD017 (3.6m @ 174g/t Au) reported last quarter, has defined a continuous gold bearing epithermal vein identified as the Mantap structure, 600m to the north of the Toguraci Resources. The recognition of the continuity of this structure has significantly upgraded the prospectivity of the Toguraci Corridor. Significant results include:
? NTD025: 2.4m (1.9m)2 @ 18g/t Au from 478.8m including 0.7m @ 59g/t Au

Mineralisation remains open along-strike towards the west and down-dip. Drilling to define the extent of mineralisation is ongoing.

Elsewhere within the Toguraci Corridor drilling continues to intersect mineralised epithermal veins to the south and west of the Toguraci Corridor. Exploration drilling will continue to assess the extent of the mineralised vein network. Significant intersections include:
? BOD098: 2.7m @ 11g/t Au from 199.2m
? TSD019: 1.4m @ 69g/t Au from 305m

The regional CoW exploration program has identified 14 highly prospective exploration targets. Drill testing has commenced at two of these targets - Batu Api West and Matat. Results to date have been encouraging with drilling intersecting gold bearing epithermal structures. (end of edited excerpt)