🕐23.04.10 - 01:42 Uhr

Solid first quarter enables LGL to lift full year production target



23 April 2010 Solid first quarter enables LGL to lift full year production target Global gold company Lihir Gold Limited (LGL) has increased its full year group gold production guidance to 1 - 1.1 million ounces following solid first quarter output of 230,000 ounces. Production at LGLs cornerstone Lihir Island operation in Papua New Guinea was 180,000 ounces for the quarter, in line with plan, and enabling full year guidance for the operation to be raised to 800,000 - 870,000 ounces. In C�te dIvoire, production at the Bonikro operation totalled 27,000 ounces for the quarter, leaving the operation well placed to deliver on its full year production target of 110,000 - 130,000 ounces. In Australia, the Mount Rawdon operation produced 22,900 ounces in the quarter, exceeding expectations.

The strong result enabled LGL to raise Mt Rawdons production guidance for 2010 to 90,000 - 100,000 ounces. Absolute total cash costs for the group decreased by 5% to US$118 million in the first quarter, translating into average unit total cash costs of US$515/oz.

Unit costs are expected to fall as production increases though the remaining quarters of 2010.

Full year guidance for total cash costs remains unchanged at less than US$450/oz. Newly appointed LGL Managing Director Graeme Hunt said the company continued to make strong progress with its growth projects during the first quarter. "In C�te dIvoire we are well advanced with a feasibility study examining the development of satellite mines at Hir�, around 10 kilometres from Bonikro, and the plant expansion from 2.0mtpa to 3.5mtpa.

This expansion should see Bonikro production increase to approximately 250,000 oz per year from 2012," he said. "Exploration in C�te dIvoire is continuing to deliver promising results, with drilling during the first quarter largely focused on the Bonikro and Hir� districts. "At Lihir Island our major expansion is now more than 50% complete and plant items such as the oxygen plant and autoclave are either in transit or being prepared for shipping to site.

The project remains on schedule and within budget," he said. Since quarter end LGL has rejected an acquisition proposal from Newcrest Mining Ltd. "We continue to be absolutely focused on maximising value, and we are open to considering any opportunities that will deliver increased returns to shareholders.

We are committed to keeping shareholders informed of developments as appropriate, and in accordance with all our disclosure obligations," Mr Hunt said. For further information: Josie Brophy Corporate Communications Manager [cid:image001.jpg@01CAE2C6.55BECC90] Lihir Gold Limited Phone: +61 7 3318 3317 Mobile: +61 448 177 502 Website: www.LGLgold.com



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