Newcrest gets four mining concessions in Indonesia

Newcrest gets four mining concessions in Indonesia

MELBOURNE (Reuter): Newcrest Mining Ltd. said yesterday the
three sixth generation contracts of work for gold exploration it
signed in Jakarta on Monday brought to four its mining
concessions in Indonesia.

The three new concessions are located in Halmahera, East
Sumbawa and West Sumatra and the existing one in North Sulawesi,
Newcrest added.

It said the signing of these contracts meant that Newcrest had
firm title to a total of 34,700 sq km of geologically promising
magmatic arcs.

"These arcs are known to host some of the largest porphyry
gold/copper and epithermal gold deposits in SE Asia, including Ok
Tedi, Grosberg, Batu Hijau, Gunung Pongkor and Porgera," the
company said. Newcrest has Indonesian partners in all areas.

At Halmahera (17,000 sq km) PT Aneka Tambang, the Indonesian
state-owned mining company, has a 10 percent interest with the
right to purchase on additional 7.5 percent on commercial terms.

In East Sumbawa (3,000 sq km) and in West Sumatra (6,000 sq
km) PT Austindo Mining Corporation (PT AMC), a company wholly
owned by the Tahija family, has a 10 percent interest.

In North Sulawesi (8,700 sq km), 5th generation CoW, the
company also has a joint venture with PT AMC (10 percent) and in
certain more copper-prospective areas Cyprus Amax Minerals Co is
earning a 45 percent interest from Newcrest.

In Halmahera, at Gosowong, Newcrest and its JV partner have
already discovered a high grade resource of one million tons.

This resource is situated only eight kilometers from the coast
near a disused timber track at an altitude of 250 metres above
sea level, Newcrest said.

Engineering scoping studies have been carried out and the
signing of the CoW should allow the timely progress to a full
feasibility study, the company said.

"Scoping work carried out to date indicates a mine with a
treatment rate of about 200,000 tons per annum producing an
average of 150,000 ounces of gold per annum over an initial four
year mine life," it said.

In Jakarta, PT Timah announced that its affiliated company PT
Kutaraja Tembaga Raya (KTR) was one of 65 contractors awarded the
CoWs on Monday.

The CoW for PT KTR, which is 75 percent owned by Phelps Dodge
Australia and 25 percent owned by PT Timah, covers three block
areas of 562,560 hectares in regencies of Aceh Tengah and Pidie
in Aceh province for exploration and mining of fold and its
associated minerals.

Timah and Phelps, which received preliminary survey permits in
January, this year, had conducted airborne and ground surveys
since than, the company said in a statement.

Timah, which is listed on Jakarta, Surabaya and London stock
exchanges, said that the result of the preliminary survey had
been very encouraging and the joint venture company was ready to
start further exploration programs.