UK's Avocet announces N. Sulawesi gold resource estimate
Tuesday, October 29 2002 - 12:08 PM WIB
The company said independent resource estimation for Riska has been completed based on 22 holes previously drilled by Newmont Mining Corporation and 25 holes drilled by Avocet to the end of August with the result showed gold resources of 468,000 ounces.
The results of hole NLD-81 (121m @ 6.22 g/t Au) indicate that the deposit contains a high grade core that could improve the overall grade of the estimated resource. Also, the results from a further thirteen holes drilled by Avocet, which are not included in this resource estimation, are likely to increase Riska?s resource base, said the company.
The company said approximately 85 percent of the estimated total gold resource lies within oxide and transition zones where metallurgical test work has confirmed that uncrushed ore is amenable to heap leaching giving gold recovery rates averaging more than 70 percent. With the likely improvements in Riska?s resource base, and an apparently low waste to ore ratio of approximately 1:1, Avocet believed that Riska will support a gold mining operation with production costs in the lowest quartile of the world?s current producing gold mines. Therefore, the company is proceeding with full feasibility studies with the objective of having the North Lanut project in production by early 2004.
The North Lanut project also includes the smaller Effendi target, which already has an inferred resource of 50,000 to 100,000 ounces following diamond drilling by Newmont. Like Riska, this deposit remains open in several directions. The company is also assessing a number of other targets in the area for the potential to add further gold resources to the proposed mine at Riska.
Avocet acquired N. Sulawesi gold prospect from Newmont Mining Corp. in March this year. (alex/robert)