16 May 2011 07:00
Immediate Release | 16 May 2011 |
AVOCET MINING PLC
INATA MINE RESUMES OPERATIONS
Avocet Mining PLC ("Avocet" or "the Company") announces that it has resumed operations at its Inata Mine in Burkina Faso after settling a temporary labour disruption.
The illegal unrest commenced as a result of a breakdown in on-going discussions involving wage reclassifications, general salary increases and other benefits. The Company signed a Memorandum of Settlement with a committee representing the Inata mine's workforce, and normal operations resumed on day shift 14 May 2011.
The Company's annual production guidance for Inata as announced on 5 May 2011 remains unchanged at 165,000 ounces at a cash cost of USD$600 to USD$650 per ounce.
For further information please contact:
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Avocet Mining PLC | Buchanan | Ambrian Partners Limited | J.P. Morgan Cazenove | Arctic Securities | SEB Enskilda | ||
Financial PR Consultants | NOMAD & Joint Broker | Lead Broker | Financial Adviser & Market Maker | Market Maker | |||
Brett Richards, CEO Mike Norris, FD Hans-Arne L'orange, EVP Business Development & Investor Relations | Bobby Morse Katharine Sutton | Samantha Harrison Jen Boorer | Michael Wentworth-Stanley Neil Passmore | Arne Wenger Petter Bakken | Fredrik Cappelen Andreas Røde | ||
+44 20 7766 7676 |
+44 20 7466 5000 +44 7872 604783 |
+44 20 7634 4700 |
+44 20 7588 2828 |
+47 2101 3100 |
+47 21008500
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www.avocet.co.uk | www.buchanan.uk.com | www.ambrian.com | www.jpmorgancazenove.com | www.arcticsec.no | www.sebenskilda.no | ||
Notes to Editors
Avocet Mining PLC ("Avocet" or "the Company") is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country's largest gold producer) and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).
In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P, a private company, for US$200 million. The transaction with J&Partners will leave Avocet as a West African gold producer with a clear strategy for growth in that region. Further details can be found in the press release dated 24 December 2010 and in the Company's preliminary results statement for 2010, dated 22 February 2011.
Background to operations
The Inata deposit presently comprises a Mineral Resource of 2.12 million ounces and a Mineral Reserve of 1.08 million ounces. Inata poured its first gold in December 2009 and has now reached an average production rate in excess of 13,500 ounces per month. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced being the Souma trend at Bélahouro, some 20 kilometres from Inata, with a Mineral Resource of 561,100 ounces), Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a Mineral Resource of 1,095,600 ounces).
Penjom is Malaysia's largest gold mine and was developed by Avocet 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.
North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage. The mine is located within a Contract of Work, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.