Newcrest says to mine new Halmahera gold deposit this year

Australian gold miner Newcrest Mining Limited expected to bring Toguraci gold discovery, which is located within a couple of kilometers of the Gosowong processing plant in Halmahera island, North Maluku into production by the end of this calendar year, according to the company?s executive.

Newcrest CEO Tony Palmer said in an interview with Corporatefile.Com.Au, which is released in Australian Stock Exchange Tuesday, that Toguraci deposit would be brought into production to replace Gosowong mine, which has begun to run out of deposit.

Palmer said the mining of the high grade ore is basically finished at Gosowong and company would continue to mill high-grade ore until mid May this year. After that Newcrest will mill low-grade stockpiles for at least another year at a grade of about five grams per ton.

Palmer said the cost to mine Toguraci would be minimum, as only little new infrastructure will be needed.

Although Toguraci is located within the company?s contract of work area, it is located in the protected forest area, where, according to forestry law, open pit mining is banned.

Palmer said the company is currently seeking permission to proceed with development from a committee set up by Indonesian government to deal with such matters. He was optimistic that the request to mine Toguraci would be granted by the committee.

Newcrest holds 82.5 percent equity in PT Nusa Halmahera Minerals, the operator of the Halmahera gold mine, while state miner PT Aneka Tambang Tbk holds the remaining 17.5 percent. (alex/robert)