Newcrest strikes another gold in Gosowong

Australian gold miner Newcrest Mining Limited said Tuesday that drilling at the Kencana prospect south of the original Gosowong mine in Halmahera Island, North Maluku province has resulted in the discovery of a significant zone of mineralisation.

Newcrest said in report to Australia Stock Exchange that the mineralisation which lies 1 km south of the original Gosowong mine has been defined by 9 holes and is contained in an envelope approximately 250 metres long, 100 metres down-dip and a thickness ranging from 3 to 20 metres. It remains open in all directions.

The drilling results include the following intersections:

HOLE NO	INTERVAL (metres down hole)	GOLD GRADE (grams/tonne)
DSD 5	10.55	20
DSD 7	23.45	110
DSD 9	13.5	29
DSD 10	3.5	105
DSD 11	10.4	34
DSD 12	28.4	7.4
DSD 13	8.9	31
DSD 14R	13.8	14
DSD 15	10.4	130

The mineralisation is in the mining production area of the Gosowong leasehold.

Four drill rigs are currently being used to progress drilling at this prospect.

Gosowong mine is currently at the end of mine life. Newcrest is trying to mine another deposit near current mine, but was halted by Forestry Law that bans open pit mining in protected forests.

Newcrest has 82.5 percent stake in PT. Nusa Halmahera Minerals, the operator of Gosowong Mine, while state miner Pt. Aneka Tambang Tbk, has the remaining 17.5 percent. (alex)