Newmont sees N. Sumatra gold project to commence production in 2008

World’s top gold miner Newmont Mining Corp. said on Wednesday that it was currently conducting feasibility study and baseline environmental impact study on its Martabe gold prospect in North Sumatra with a view to commence first production in 2008.

The company did not provide detail about the prospect’s gold reserve, but said equity mineralized material not in reserves totaled 73.5 million tons at 0.05 ounce of gold per ton.

Newmont said the ore would be processed with Semi-Autogenous Grinding (SAG) and ball mill with a Merrill-Crowe gold recovery circuit. The company did not say the estimate production rate.

Martabe was discovered by Normandy Mining in 1997. Normandy was acquired by Newmont in 2002.

Martabe has several targets including Purnama, Pelangi, Baskara and Kejora, stretching over 4 miles. The Purnama deposit was brought into non-reserve mineralized material for the first time at year-end 2002.

The company said it would spend US$3.2 million in exploration program for 2003, which would be focused on definition drilling and expanding the mineralization to the south.

Newmont has 90 percent stake at the project. (alex)