Newcrest's Gosowong gold production down on mine closure

Australian miner Newcrest Mining Limited announced on Monday that quarterly production from its Gosowong gold mine in Halmahera, North Maluku province was 4,109 ounces, down from 9,910 ounces in the previous quarter.

The drop in production was due to Gosowong mine closure.

The mill was put on care and maintenance at the end of April, said Newcrest.

Newcrest terminated Gosowong mine operations due reserve depletion, but had secured permit from indonesian government to mine Toguraci prospect, which is located near Gosowong mine.

"Preliminary road access to Toguraci has been completed and clearing of the pre-strip zone underway with production expected to commence in early December 2003," said Newcrest.

Newcrest said additional drilling has commenced at Toguraci with 3 drill rigs focused on resource definition and extension of the mineralized zones and exploration at the Kencana prospect, where the company had just discovered significant mineralization, is ongoing.

Newcrest holds 82.5 percent equity in PT Nusa Halmahera Mineral, which runs the gold mine, while state miner PT Aneka Tambang Tbk, holds the remaining 17.5 percent. (alex)