22nd Dec 2009 07:00
AVOCET POURS FIRST GOLD AT INATA IN BURKINA FASO
Avocet Mining PLC ("Avocet" or "the Company") announces first gold production at its Inata mine in Burkina Faso on 20 December 2009.
This milestone marks the commencement of production and commissioning at the Inata gold mine with an anticipated six month ramp up to full production. Inata's gold production is expected to increase to over 10,000 ounces per month by July 2010. During the plant commissioning stage monthly gold production will build up to this level and on occasions be intermittent. Total production in 2010 is expected to be between 90,000 and 110,000 ounces. The Inata gold mine is currently forecast to produce an average of over 120,000 ounces per year during an initial seven year mine life.
Jonathan Henry, Chief Executive Officer, commented:
"We are very pleased to reach this key milestone, which is a testament to our employees and the contractors who have supported the project. We are excited to be working with the government of Burkina Faso in bringing the country's fifth gold mine into production since it introduced a new mining code in 2003. We will continue to work diligently to ensure a successful ramp up to full production in the shortest possible period."
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For further information please contact: |
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Avocet Mining PLC |
Buchanan Communications |
Ambrian Partners Limited |
J.P. Morgan Cazenove |
Arctic Securities |
First Securities |
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Financial PR Consultants |
NOMAD and Joint Broker |
Lead Broker |
Financial Adviser |
Financial Adviser |
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Jonathan Henry, CEO Mike Norris, FD Hans-Arne L'orange, EVP Investor Relations & Business Development |
Bobby Morse Katharine Sutton |
Richard Brown Richard Greenfield |
Michael Wentworth-Stanley Anish Patel |
Arne Wenger Kim Galtung Døsvik |
Stein Hansen Eirik Lilledahl |
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+44 20 7766 7676 |
+44 20 7466 5000 |
+44 20 7634 4700 |
+44 20 7588 2828 |
+47 21013100 |
+47 2323 8000 |
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www.avocet.co.uk |
www.buchanan.uk.com |
www.ambrian.com |
www.jpmorgancazenove.com |
www.arcticsec.no |
www.first.no |
Notes to Editors
Avocet Mining PLC ("Avocet" or "the Company") is a mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM). The Company's principal activities are gold mining and exploration in Malaysia (as 100 per cent owner of the Penjom gold mine, the country's largest gold producer), Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi) and Burkina Faso (as 90 per cent owner of the Inata gold project currently being commissioned). The Company has a number of other advanced exploration projects in South East Asia and West Africa.
Background to operations
Penjom is Malaysia's largest gold producer and was developed by Avocet after applying modern technology to grass roots exploration in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur. The mine was commissioned in December 1996 with reserves of 223,000 ounces. Successful resource development means Penjom has produced over one million ounces of gold to date and still has nearly one million ounces of resource. Over the last two years Penjom has expanded its mining and plant capacity with plant throughput increasing from 570,000 to over 700,000 tonnes per annum to compensate for decreasing mined grades.
North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004. Avocet purchased an 80 per cent interest in PT Avocet Bolaang Mongondow, an Indonesian company holding a 6th generation Contract of Work ("CoW"), from Newmont Mining Corporation in 2002. North Lanut is located within the CoW, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. An Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent. The Company has a number of other advanced development and exploration projects in Indonesia.
The Inata gold project in Burkina Faso, West Africa, was purchased by Avocet as a result of the acquisition of Wega Mining ASA ("Wega Mining") which was completed in June 2009. Other assets acquired from Wega Mining include exploration licences in Burkina Faso, Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a resource of 667,000 ounces).
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