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Thursday, 21st December 2006 (3229 views)

Avocet Mining has raised its initial reserve estimates for its gold mining operations in Malaysia.

The company confirmed that its reserve estimate at the Penjom gold mine has been raised by a total of 132,900 ounces, bringing a 24 per cent increase to the life forecast of the mine.

New exploration at the site means that Penjom's reserves now mean a life of mine forecast of 4.82 million tonnes grading 4.00 grams per tonne and containing an estimated 619,700 ounces of gold.

There remains further room for mining expansion at the site, especially to the north of current operations and it is also expected that costs of the operation will continue to fall as the company implements a wide ranging programme aimed at reducing waste at the site.

Avocet Mining chief executive, Jonathan Henry, explained: "With the recent purchase of a fuel efficient truck fleet and a concerted waste stripping programme over the course of 2006 and into 2007, Penjom cash costs will fall to levels below those currently being experienced."

"The future at Penjom continues to look bright," he added.

 

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