Newcrest reports N. Maluku gold production

The following is an excerpt from Australian miner Newcrest Mining Corp.?s quarterly report for the three months ending March 31, 2009 released on Thursday.

Gosowong, Hamahera island, North Maluku (82.5%)
Gosowong?s March quarter performance was 79,878 ounces of gold at a gross cash cost of $422 per ounce. This compares with the December quarter performance of 83,083 ounces of gold at a gross cash cost of $440 per ounce.

Gold production was marginally lower due to lower throughput and recoveries.

Mining was focused on the lower grade portions of the K1 orebody and accessing initial ore from the K-Link ore body.

Quarterly unit cash costs declined due to a reduction in diesel prices and underground consumables. The benefit of these costs reductions was partially offset by lower gold production.

Full year production guidance of 405,000 - 420,000oz will be achieved by accessing the higher grade K2 ore body and higher recovery levels as a result of commissioning the Vertimill early in the June quarter.

Gosowong had a substantial negative cash cost impact from the weaker Australian dollar ($20 million year to date), however annual cost guidance of A$128 million is maintained. Gosowong has successfully reduced its US$ cost base throughout the year.

DEVELOPMENT
The Gosowong Expansion Project is continuing on schedule and budget with 26% of project capital committed by quarter?s end.

Mine development work is progressing on schedule with access to initial high grade K2 ore expected in the June quarter. The first raise-bore was successfully completed and the K2 extension shaft headframe and winder building were erected to commence shaft sinking.

The tertiary grinding Vertimill is in the final stages of construction and will be commissioned early in the June quarter. This mill is designed to increase gold recovery up to 5% via reducing grind size.

EXPLORATION
Discovery drilling focused within Southern Gosowong Goldfield area, targeting additional mineralisation along strike of Kencana and Toguraci systems. Drilling was also undertaken at the Ruwait prospect situated immediately north of Gosowong.

Best results were from the Toguraci North area. Three drill holes were completed in this area, with significant results returned from two holes. Drill-hole TND003 returned 7.7m @ 12.4g/t Au from 403.5m. This intercept included 3.4m @ 25.1g/t Au from 404.2m. Drill hole TFD037 returned 5.5m @ 19.4g/t Au from 162m including 2.2m @ 46g/t Au from 163.0m. Follow up drilling is underway. (end of excerpt)