Newcrest reports N. Maluku gold production, exploration
Thursday, January 22 2009 - 03:51 AM WIB
Gosowong, Hamahera island, North Maluku (82.5%)
Gosowong?s December quarter performance was 83,083 ounces of gold at a cash cost of $438 per ounce. This compares with the September quarter performance of 127,495 ounces of gold at a cash cost of $245 per ounce.
Gold production declined as forecast due to lower grades encountered in the lower portions of the K1 orebody. Grades are expected to approximate the reserve grade over the remainder of FY09. Achieved mill throughput rates continued to increase lifting 11% during the quarter due to improved mill utilisation and ongoing grinding circuit optimization.
Quarterly unit cash costs increased due to the lower production levels and the impact of converting
Comparable cash costs, after by-product credits at the September quarter exchange rate would have been $329 per ounce. Gross site cash costs in US$ million declined in the December quarter compare to September.
Full year production guidance has increased slightly to 405,000 - 420,000 oz. Annual site cash costs guidance is maintained by pursing cost reduction initiatives to absorb the negative impact of the currency depreciation.
Development
Board approval to develop the Gosowong Expansion Project was received during the quarter. The project involves extension of the existing Kencana underground mine into the K Link and K2 orebodies and increasing process plant throughput to 65tph (currently 50tph). The project scope includes additional mine development, ventilation works, processing facility upgrades, increased tailings storage capacity and upgrades to general site infrastructure.
The development capital cost of the project is estimated at US$ 179 million including early commitment capital. The Expansion Project is planned to increase gold production to an average annualised rate of over 450,000oz from the March 2010 quarter.
Early commitment work for the project has progressed on schedule and within budget. Decline development and vent shaft construction were undertaken during the quarter.
The tertiary grinding mill is in transit and due on site in January 2009. This will allow installation and commissioning by the end of the March 2009 quarter. Mill footings have been completed and the required power generation equipment installed. This mill is scheduled to increase throughput rates and lift recoveries by reducing grind size. (end of excerpt)