UK?s Avocet to decide on N. Sulawesi gold prospect development this year

UK miner Avocet Mining PLC expects it will be able to make decision whether or not to develop North Sulawesi gold mining prospect by the end this year after pre-feasibility study to validate a mineable resource of at least 400,000 ounces of gold is completed.

The company said in a report last week, that based on feasibility results to date, it expected North Lanut project, where its most advanced gold resources is located, would be able to support an operation producing a minimum of 50,000 ounces of gold per year at a cash cost below US$150/oz.

In March 2002 the avocet announced the acquisition of a 460 square mile exploration property in North Sulawesi, from Newmont Mining Corporation. Avocet owns 80 percent shares in the prospect, while local company PT. Lebong Tandai has the remaining 20 percent.

From the thirty-seven gold occurrences identified by Newmont, Avocet is focused on developing a gold mine based on two adjacent deposits in an area known as North Lanut where exploration drilling by Newmont identified a mineral inventory of 800,000 ounces of gold. (alex)