Released Date - January 29, 2010 PNG – MINING: THE AUSTRALIAN                                    PACNEWS BIZ: Fri 29 Jan 2010   Newcrest boosted by PNG gold find   29 JANUARY 2010 PORT MORESBY ( THE AUSTRALIAN) ---- Gold Miner Newcrest has delivered a strong second-quarter production report, slashing costs, announcing some promising discoveries in Papua New Guinea (PNG) and boosting forecast full-year copper production.   The miner says second-quarter gold production rose 17 per cent from the previous quarter to 442,333 ounces as the big Telfer mine in Western Australia's Pilbara region finally began to hit its stride, logging record quarterly production of 184,610 ounces. “We have moved Telfer to the point we flagged some time ago, which is to the mid-point of the cost curve. In fact, we're a little better than that,” Newcrest chief executive Ian Smith said.   Gross cash costs, which include credits from the Melbourne-based miner's copper byproducts, slumped from $450 an ounce to $310 an ounce, while the achieved gold price for the quarter was up 1 per cent at $1155 an ounce.   “Our site operating costs were lower at all of our sites and, as we ramp up production, we see that as a trend moving forward,” Mr Smith said.   Newcrest also revealed it had made a new discovery in Papua New Guinea, identifying a new zone of high-grade copper-gold mineralisation at Golpu West, next to the existing Golpu resource.   UBS analyst Jonathan Battershill said the reduction in costs could see analysts boost first-half earnings forecasts for Newcrest. But he said he was more excited by Golpu West and some other strong results at nearby Wafi. "The key take away for me was the level of mineralisation they are starting to find in Papua New Guinea," Mr Battershill said. "It could be another Cadia-sized province."   Newcrest's Cadia Valley operations in NSW produce about 550,000 ounces of gold a year, but are scheduled to ramp up to about 700,000 ounces a year in 2013 when the Cadia East mine opens.   Newcrest now expects full-year copper production of between 85,000 and 90,000 tonnes, up from previous guidance of 83,000 to 87,000 tonnes.   Mr Smith, who is also chairman of the Minerals Council of Australia, played down reports the Henry tax review has recommended the government slap a 40 per cent resource rent tax on mining.   “These taxation reports and reviews tend to have a very long gestation period,” Mr Smith said.   “The royalty regime that has been cited in their report will be an interesting point of discussion going forward, but I think that at this stage you can only view it from that perspective.”..PNS (ENDS)