6th May 2005 07:00
Avocet Mining PLC06 May 2005 AVOCET MINING PLC YEAR END AND FOURTH QUARTER GOLD PRODUCTION CHANGES TO MANAGEMENT Avocet Mining announces that total gold production for the financial year ended31 March 2005 amounted to 172,938 ounces (2004: 180,203 ounces), and includedfourth quarter production of 50,264 ounces (Q4 2004: 45,041 ounces). Gold production from Penjom in Malaysia amounted to 32,260 ounces for the fourthquarter (Q4 2004: 30,013 ounces) bringing Penjom's total production for thefinancial year to a higher than expected 119,846 ounces (2004: 124,432 ounces).Total cash costs at Penjom are estimated to be US$203/oz for the financial year(2004: US$192/oz). Production from JV Zeravshan LLC (ZGC) in Tajikistan for the fourth quarter was9,827 ounces (Q4 2004: 15,028 ounces), bringing total production for thefinancial year to 44,241 ounces (2004: 55,771 ounces). Total cash costs at ZGCare estimated to be US$439/oz for the financial year (2004: US$320/oz). Theincreased unit cost and decrease in production at ZGC were primarily on accountof increased waste stripping needed for the reopening of the Jilau Main open pitand a large proportion of production coming from low grade stockpiles. Therecent trend in costs and production will reverse as Jilau Main becomes a farmore significant source of ore over the next six months. Now that progress has been made towards expanding existing operations, ZGC hascommenced feasibility studies for the development of two of its developedunderground projects, Taror and Chore, with the objective of adding100,000-150,000 ounces per year of gold production within the next two years. Gold production from the Company's new gold mine at North Lanut in Indonesiaamounted to 8,177 ounces for the fourth quarter bringing total production forthe financial year to 8,852 ounces. Total cash costs at North Lanut areestimated to be US$500/oz for the start up period, as the gold inventory in thedump leach pads builds up prior to the operation reaching steady state. Cashcosts are expected to reduce to below US$200/oz once the dump leach operationsbuild up to their full production capacity. Full details of each operation, including updated resources and reserves, willbe announced at the time of the Company's preliminary year end audited resultsdue on 13 July 2005. In the past two years, the Company has increased its operations from one goldmine in Malaysia to three gold mines in both regions of the world where theCompany is committed to further growth. In recognition of this, the Company hasrestructured its senior management. Eric Vesel, who has been with the Group fora number of years, more recently as the general manager at Penjom in Malaysia,has been appointed to the position of Regional Manager - South East Asia. JayLayman joins the Group as Regional Manager - Central Asia. Jay was formally asenior manager with Newmont Mining Corporation in Uzbekistan, the USA andIndonesia, and with Pegasus Gold in Kazakhstan and the USA. Avocet is a mining company listed on the AIM market of the London StockExchange. The Company's principal activities are gold mining and exploration inMalaysia (as 100% owner of the Penjom mine, the country's largest goldproducer), Tajikistan (as 75% owner of JV Zeravshan LLC, Tajikistan's principalgold mining company), and Indonesia (as 80% owner of the North Lanut mine inNorth Sulawesi). ________________________________________________________________________________ For further information please contact: Avocet Mining PLC John Catchpole (Chief Executive) Jonathan Henry (Finance Director)020 7907 9000www.avocet.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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