Newcrest reports N. Maluku gold production, exploration
Thursday, October 22 2009 - 01:08 AM WIB
Gosowong, Hamahera island, North Maluku (82.5%)
Gosowong?s September quarter performance was 90,968 ounces of gold at a gross cash cost of $337 per ounce. This compares with the June quarter performance of 109,764 ounces of gold at a gross cash cost of $314 per ounce.
Gold production declined due to lower grade. This was partially offset by higher mill throughput and improved recovery performance.
Mining continued in both the K1 and K2 orebodies. Mine production was less than the previous quarter due to the ground conditions and establishment of new production areas. The first tong hole open stoping (LHOS) trial was successfully completed during the quarter. LHOS is a lower cost mining technique than the existing under hand cut and fill method and will continue to be trialled in areas of the orebody containing more competent rock.
Mill throughput increased 21% with the first full quarter of vertimill operation and ongoing mill optimisations. Lower grade ore was processed due to the combined impact of accessing lower grade zones within the orebodies and processing lower grade stockpiles. Additional lower grade stockpiled ore supplemented the higher mill throughput rates.
Site cash costs declined reflecting lower labour costs from the transition to owner mining on 1 July partly offset by higher diesel prices. Unit cash costs increased as a result of the lower production level.
Gold production during the remainder of Financial Year 2010 will increase with mining of higher grade areas of the orebody.
PROJECT DEVELOPMENT
The Gosowong Expansion Project is on schedule and under budget with all major process plant, power station and infrastructure components committed, 50% of total planned expenditure is committed.
Mill debottlenecking work and the first full quarter of vertimill operation have resulted in throughput and recovery improvements continuing to exceed plan.
Mine development continued on schedule with more than 50% of the K2 ventilation shaft completed during the quarter.
Total project capital is forecast to be below the original capital estimate as a result of lower equipment prices.
EXPLORATION
Drilling within the Toguraci Corridor, north of the exhausted open pit mine, focused on defining the continuity of the mineralisation reported previously within the Damar and Yahut Structures. Also at Gosowong, drill testing of the potential south east strike extent of Kencana mineralisation was ongoing. (end of excerpt)