Newcrest sees gold output at 400,000 ounces PA from 2009

Australian mining firm Newcrest Mining Limited expects production from its Gosowong gold mine in Halmahera island, North Maluku province to reach 400,000 ounces per year starting mid-2009, when its addition of underground mine called K2 starts production.

The company in a presentation released Monday said the 400,000 ounce-per-year output would last for over 6 years.

Currently, the company?s gold production is entirely sourced from K1 underground mine.

Meanwhile, the company said it was currently conducting drilling campaign at a prospect called Batu Api, which is located 6 kilometers north east of Kencana mine, with the aim of identifying second mining area.

Newcrest holds 82.5 percent equity in Gosowong mine. (alex)