Newcrest reports N. Maluku gold production, exploration
Wednesday, July 22 2009 - 02:07 AM WIB
Gosowong, Hamahera island, North Maluku (82.5%)
Gosowong?s June quarter performance was 109,764 ounces of gold at a gross cash cost of $314 per ounce. This compares with the March quarter performance of 79,878 ounces of gold at a gross cash cost of $422 per ounce.
Gold production increased 37% due to higher grades, increased mill throughput and improved recoveries.
Mining was focused on higher grade portions of the K1 orebody and accessing initial ore from the K2 orebody. Owner mining commenced on 1 July and is a business improvement initiative to further reduce mining costs and improve operational efficiencies.
The successful commissioning of the vertimill in early May resulted in a 5% lift in gold recoveries and a 14% increase in mill throughput during the quarter.
Quarterly unit cash costs declined due to higher gold production. The decline was further enhanced by the appreciation of AUD:USD exchange rate as Gosowong has a USD denominated cost base.
Depreciation declined $61/oz in the quarter due to the increased production level and an appreciating AUD.
Full year gold production was marginally below guidance. Site costs in USD terms were significantly below plan due to the implementation of cost reduction initiatives. However in AUD terms site costs were above guidance due to the impact of a weaker AUD:USD over the financial year. Depreciation was in line with guidance.
DEVELOPMENT
The Gosowong Expansion Project remains on schedule and budget with 30% of project capital committed and project engineering 25% complete.
One of the two tertiary grinding vertimills planned for the Gosowong mill expansion project was successfully commissioned in early May. Initial results have exceeded expectations, increasing gold recovery by more than 5% to 95% and increasing mill throughput by more than 20%.
Mine infrastructure works are progressing on schedule with the completion of all three ventilation raise-bores which will improve ventilation to mine production areas. The K2 extension shaft head frame, winder and associated components have been completed and approved by government authorities. Shaft sinking is progressing on schedule with 33% of the development completed. Work is underway to improve shaft development rates to allow earlier ventilation availability.
K2 decline development continued as planned with access to high grade K2 ore achieved in April.
EXPLORATION
Discovery drilling focussed on the new zone of mineralisation identified to the north of the Toguraci system. Four holes were drilled and significant results include:
? 2.3m @ 331g/t Au from 265m including 0.9m @ 805g/t Au in TND007.
? 2.1m @ 9.3g/t Au from 321.6m in TND009, 80m below TND007 high grade intercept.
This zone of mineralisation is located to the north of Toguraci. Drilling is now focussed on determining the extent of this new zone of mineralisation. (end of excerpt)