UK's Avocet reports Indonesian gold production

UK miner Avocet Mining PLC reported on Friday that its gold production from Lanut mine in North Sulawesi during Janury-March quarter reached 8,177 ounces.

The company said total cash costs at North Lanut are estimated to be US$500/oz for the start up period, as the gold inventory in the dump leach pads builds up prior to the operation reaching steady state. "Cash costs are expected to reduce to below US$200/oz once the dump leach operations build up to their full production capacity," the company said.

The mine commenced production in October 2004.It has 80 percent stake at Lanut gold mine.The mine is expected to produce 50,000 ounces of gold annually for 5 years.(alex)