Wednesday, July 22, 2009

Newcrest Gosowong gold output surged 37%

Newcrest Mining Limited, Australia, reported 37% lift in gold production at Gosowong due to higher grades, mill throughput, and recoveries.
Newcrest told Australia Stock Exchange (ASX) today that gold production in Gosowong reached 109,764 ounces for the second quarter 2009, increased 37% from 79,878 ounces in the first quarter 2009 and 4% higher than second quarter of 2008 at 104,065 ounces.
With averaged gold price of A$1223 in Q2 2009 and A$1352 in Q1 2009, Gosowong generated US$134 million of gold sales revenue in Q2 2009 and US$108 million in Q1 2009 or a combined US$242 million in first half 2009.
Newcrest is the controlling shareholder in Gosowong with 82.5%. Newcrest told investors that increased gold production target is 450,000 oz per annum from the project with throughput rates of 65tph by mid 2010. Gosowong is a world class epithermal goldfield with 5 million oz discovered to date. Ten drilling rigs are currently in operation from both surface and underground. Kencana field has 3.6 million oz of gold discovered to date, while Gosowong Toguraci field with 1.4 million oz. The expansion project, Newcrest said, has IRR over 50% on the current reserves. With 5 million oz and US$600 per oz, the value of Gosowong reserves is around US$3 billion. Wonder how much the project generated to the State.

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