Newcrest?s Indonesian Q1 gold production down

Australian miner Newcrest Mining Limited reported on Monday that total gold production from its mine in Gosowong, Halmahera island, North Maluku lowered 6 percent to 78,211 during first quarter 2007 from 83,070 ounces in the previous quarter.

 

Total gold production declined as an increased proportion of lower grade Toguraci stockpiles, Newcrest said in statement.

 

Production from open pit ore for the quarter was lower at 5,453 oz based on 25,821 tons processed at a head grade of 6.99 gram per ton (g/t). Meanwhile from Kencana underground production for the quarter was 1 percent lower at 72,578 oz based on 57,008 tons processed at a head grade of 42.90 g/t, the company said.

 

Gold continued to improve throughout the quarter with adjustments made to the grind size and other minor plant modifications. Recoveries should continue to improve during the second quarter. Gosowong production guidance for 2006/2007 has been increased by 10,000 ounces to 340,000 gold, the company added.

 

Earlier, the company expected to be able to exploit additional reserves at its Gosowong mine starting mid 2009 to enable the company to keep production from the mine above 300,000 ounces per year.

 

Gosowong gold mine is operated by PT Nusa Halmahera Minerals, a joint venture company between Newcrest Mining Limited (82.5 percent) and PT Aneka Tambang (17.5 percent). (denny)