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 March 31, 2012 released on Tuesday.

Operation
Gosowong?s March 2012 quarter performance was a record production outcome of 118,853 ounces of gold at a cash cost of A$367 per ounce. This compares with the December 2011 quarter performance of 107,500 ounces of gold at a cash cost of A$404 per ounce.

Gold production was 11% higher than the previous quarter due to record quarterly mill throughput, with a monthly record set in March. The gold feed grade was consistent with the previous quarter, and gold recoveries were maintained. Underground mining continued in the K1, K2 and K-Link orebodies, with a small amount of ore mined from the Toguraci underground mine. Waste movement continued on the Gosowong open pit cutback, with a small volume of ore mined during the period.

Unit cash costs were lower in the quarter, reflecting the increased gold production.

Exploration
At Kencana, underground drilling tested extension targets in and around the K1 and K2 shoots. Step out drilling south of K2 has returned strong results including:

- K2D078 7.3m (2.0m)* @ 22g/t Au from 108.7m and 11.0m (2.5m)* @ 25g/t Au from 146.0m
- K2D112 13.4m (4.9m)* @ 14g/t Au from 115.6m
- K2D113 2.2m (0.9m)* @ 26g/t Au from 136.1m
- K2D114 3.1m (1.0m)* @ 37g/t Au from 158.2m
- K2D122 6.3m (3.2m)* @ 13g/t Au from 76.3m
- K2D123 6.4m (2.8m)* @ 15g/t Au from 62.0m
- K2D126 9.9m (4.1m)* @ 11g/t Au from 113.5m
- K2D129 5.0m (2.9m)* @ 13g/t Au from 58.9m

These intercepts occur outside of present resources and indicate the potential for incremental resource growth.

Drilling is ongoing to define the extent of this high grade mineralisation. At K1 North, drilling has returned and intercept of 2.9m (1.4m)* @ 10g/t Au from 179.6m (K1D170), extending the mineralisation to the north.

The search for new resources is focussed within the highly prospective Toguraci Corridor. Drilling has been successful with the intersection of several new epithermal structures and a new zone of mineralization on the Mantap structure which returned 1.0m (0.9m)* @17g/t Au from 355.1m and 2.6m (1.4m)* @ 4.0g/t Au from 240.5m in NTD049. Drilling is ongoing to define ore shoots within this prospective corridor.

Regional discovery drilling recommenced following the reinstatement of aviation support which impeded remote area exploration.

Drilling will continue to test the remainder of the prospective geochemical targets to help define the extent of the mineralisation. (end of excerpt)