Newmont's Martha mine gold sales up 54% on higher grades

Denver-based parent company Newmont Mining Corporation, said in its second quarter report that the rise in gold ounces sold was primarily due to a 55% increase in ore grade from mine sequencing in the open pit.

Gold sales from Martha were 46,500 oz, in the second quarter compared to 30,100 oz in the 2004 second quarter.

Sales of gold for the first six months of this year reached 90,600 oz, a big jump from the 52,700 oz in the first half of 2004.

Newmont forecasts production in its guidance estimates as 155,000 oz for the full 2005 year with costs applicable to ounces sold as US$170.

Costs applicable to sales per ounce decreased 28% in the second quarter of 2005 compared to the second quarter of 2004, primarily due to increased production that was partially offset by higher processing costs from milling harder ore.

The Martha open pit is currently scheduled to close by the middle of next year.

Newmont Waihi Gold reported on its Martha Mine website that at Newmont’s underground Favona mine currently being developed just outside of Waihi, work on the decline was now over 500 m long and over 70 m below the surface.

A significant exploration drilling programme continued in a number of areas, including Waihi East, on Union Hill, and under the Martha open pit.