Avocet hires chief geologist/resource and drill results
Avocet Mining PLC (“Avocet” or “the Company”) announces the appointment of Peter Flindell
as Chief Geologist. With over sixteen years’ experience in gold and copper exploration,
resource evaluation and reserve development in S.E. Asia and North America, Peter will be
responsible for all Avocet’s mine, project and grassroots exploration.
Prior to joining Avocet, Peter spent twelve years with Newmont Mining Corporation
(“Newmont”), where he held a number of key technical and management positions, including
Exploration Manager for the Western Pacific Region. During his career with Newmont, he
played a leading role in the exploration and development of the two million ounce
Mesel gold mine in North Sulawesi, Indonesia, and was responsible for the discovery
of Avocet’s North Lanut project which is about 40 km from Mesel. He was also involved
in the early assessment and evaluation of Newmont’s US$2 billion Batu Hijau copper-gold
mine in Sumbawa, Indonesia.
Peter is a geology graduate from the Australian National University and is a member
of the Society of Economic Geologists and the Australian Institute of Mining and Metallurgy.
Peter’s appointment will enhance Avocet’s recently stated strategy of focusing on its gold
business. The success of the Penjom gold mine in Malaysia, coupled with positive results
from the North Lanut project in Indonesia, will provide Avocet with a strong foundation for
expanding its exploration and development activities in the region.
Penjom, Malaysia
Penjom’s production for the quarter ending 30 June 2002 was an estimated 27,460 ounces
of gold. This was better than expected because the independently audited mineral resources
included within the present open pit design (as announced on 7 February 2002) has for the
past eight months underestimated the mine’s realised ore tonnes and gold grades by 25% in
terms of contained gold. This underestimation is a result of the complex nature of the ore
bodies and the consequent requirement to have a higher than normal degree of conservatism in
their evaluation. The following table compares Penjom’s life-of-mine ore production from the
audited mineral resources included within the present open pit design, after adjusting for
production up to 31 March 2002, with the Company’s new estimate of ore production.
Tonnes Grade (Au g/t) Troy Ounces
Company’s Estimate 2,678,225 6.75 581,500
Audited Estimate 1,720,244 6.03 333,650
Difference +36% +12% +43%
The Company’s new estimate above not only includes its own re-interpretation of
Penjom’s audited resources based on reconciliation results to date, but also a
reduction in cut-off grades from 2.0 g/t to 1.5 g/t to reflect higher gold prices,
and the addition of approximately 100,000 ounces previously omitted. This additional
resource had been under evaluation for possible extraction by underground mining
methods. Although results showed that the economics of underground mining were
comparable with mining the resource in a new open pit design, the latter option was
selected as more compatible with existing operations. However, underground mining
remains an option for possible resources outside Penjom’s current pit limits. This
potential and a number of other exploration targets at Penjom will be the focus of
a new, high priority exploration programme.
North Lanut, Indonesia
North Lanut includes two adjacent gold deposits, Riska and Effendi, which are the
most advanced of the gold prospects discovered by Newmont within the 460 square
miles of exploration and mining rights that the Company acquired from Newmont in
March 2002.
To date, the Company has received results for the first 18 diamond drill holes
completed. The table below summarises the results from all holes.
Drill From To Interval Average Grade
Hole (m) (m) (m) (g/t Au)
NLD-56 0 153.5 153.5 1.28
incl. 34.2 78.2 44.0 2.03
and 102.2 136.5 34.3 1.85
NLD-57A 49.0 174.4* 125.4 3.30
incl. 81.0 113.0 32.0 8.27
NLD-58 59.0 110.7* 51.7 1.24
NLD-59 37.0 41.0 4.0 2.02
NLD-60 0 111.7* 111.7 1.53
incl. 75.5 85.5 10.0 6.41
and 97.5 109.5 12.0 3.36
NLD-61 57.5 148.7* 91.2 3.40
incl. 69.5 73.5 4.0 18.7
and 113.0 117.0 4.0 12.0
NLD-62 65.5 93.5* 28.0 1.08
NLD-63 63.5 84.0 20.5 1.89
NLD-64 92.0 104.5 12.5 2.23
NLD-65 18.0 32.0 14.0 1.25
NLD-66 81.0 89.0 8.0 1.27
NLD-67 5.0 19.0 14.0 1.32
NLD-68 68.0 84.0 16.0 1.13
NLD-69 19.0 51.0 32.0 1.50
NLD-70 110.0 124.0 14.0 1.86
NLD-71 46.0 58.0 12.0 0.82
NLD-72 40.5 164.5 124.0 2.18
incl. 116.5 144.5 28.0 2.91
NLD-73 0 141.7 141.7 2.22
incl. 94.0 108.0 14.0 10.2
* indicates that mineralisation is open at depth
Note: Standard sampling procedures were followed whereby drill core was sawn in
half using a diamond saw then sampled on two metre or smaller intervals, leaving
half of the core for archival storage on site in Indonesia. Gold is analysed using
a standard fire assay technique by an independent Indonesian subsidiary of Analabs.
Analabs is an internationally recognised firm owned and operated by Scientific Services
Ltd., an Australian Stock Exchange listed company.
The North Lanut drill programme is assessing the potential for a 400,000 ounce
measured and indicated gold resource in the upper 175 metres of the Riska deposit
where the ore is most likely to be amenable to low cost open pit mining and heap
leaching. This involves testing the core of the deposit to evaluate grade continuity
and provide samples for metallurgical test work. It also involves drilling the flanks of the deposit to assess the lateral extent of mineralisation.
In general, the Company’s exploration results to date indicate that Riska, alone,
could meet Avocet’s minimum ore resource target. Newmont’s drilling results on both
Riska and Effendi outlined a mineral inventory of 800,000 ounces of gold with an
average grade of 1.2 g/t. Avocet anticipates that it will complete a pre-feasibility
study on the North Lanut project sufficient to make a mine development decision by
the end of 2002.
Avocet is a mining company listed on the main board of the London Stock Exchange
although it has recently announced its intention to move to the Alternative
Investment Market (AIM). The Company’s principal activities are gold mining and
exploration in Malaysia and Indonesia and the operation of a tungsten mine in Portugal.
For further information please contact:
Avocet Mining PLC
John Catchpole (Chief Executive and Finance Director)
Jonathan Henry (Executive Vice President) 020 7907 9000
Website: www.avocet.co.uk
4C Communications Ltd.
Carina Corbett
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