Newcrest completes Gosowong plant expansion

By Demas Simbolon

ASX-listed gold producer Newcrest Mining Limited recently stated it has completed the expansion plant project at the 30,000 hectares Gosowong concession, located in Halmahera Island of North Maluku. The company, in a recent statement, said it expects the 82.5 percent owned mine to elevate output from 375 to 425 kozs of gold, accumulating to a total of 15 percent from the company's total gold output per year. Silver production is expected to also rise to between 410 and 460 kozs.

"Gosowong's consistent production is around 400koz per annum,? the company said, adding as though the grade is falling, throughput is increased.

The company stated to have spent between A$175 and A$185 million worth of cash cost for Gosowong.

Starting its underground mining operation since February 2005, the mine is known to have an estimated resource of 4.8 million tons at 16g/t Au for 2.5 Moz (100 percent basis) and reserve of 5.2 million tons at 13g/t Au for 2.1 Moz (100 percent basis), according to the company's mineral resource and ore reserve status released on June 30, 2011.

The Gosowong Extension Project is based on the development of Kencana 2 and Kencana Link gold deposits located adjacent to the existing Kencana mine, one of the highest grade, underground gold mines in the world today. Kencana is the third mine to be developed by Newcrest at Gosowong site in February 2005 and the first underground ore mined in March 2006, located 1 kilometer south of the original Gosowong pit.

The company stated to allocate up to A$20 to A$25 million worth of capital expenditure for financial year 2013 to finance next stage exploration activities at Gosowong, consisting of step out drilling around Toguraci and Kencana, as well as regional grassroots exploration within the concession's Contract of Work.

Editing by Er Audy Zandri