PORGERA JOINT VENTURE（一）.docVIP

PORGERA JOINT VENTURE QUARTERLY PRODUCTION AND DEVELOPMENT REPORT QUARTER ENDED 31 DECEMBER 1999 Gold production was 212,622 ounces for the December quarter and 754,754 ounces for the year ended 31 December 1999. This high production was achieved despite some power outages during the quarter, as well as a slow production start at the beginning of the year. The figures compare with 173,027 ounces and 726,806 ounces for the same periods in 1998 and confirm Porgera’s status as the largest gold mine in Australia and Papua New Guinea and one of the world’s major low cost gold producers. Gold production in 2000 is again expected to achieve approximately three quarters of a million ounces. Gold produced for the quarter was 5% above plan due to 30% higher grade from the open pit and an improvement in overall gold recovery to 81%. The higher recovery rate (4.9% above plan) resulted partly from early commissioning of the rougher flotation extension. Mill throughput was 1,286,634 tonnes for the December quarter and 5,604,430 tonnes for the full year. The quarterly throughput was lower than projected due to power outages on the power line to Hides. A major re-brick of Autoclave No 1 also contributed to the lower throughput.  The PJV continued to improve efficiencies in 1999 with the installation of an extension to the rougher/scavenger flotation, which exceeded expectations with more than 2.6% recovery increase. A gravity cleaner circuit was installed to improve the amount of gold for direct smelting and to improve the efficiency of downstream circuits. The operation is presently mining ore in Stage 3 and is stripping waste in Stage 4. Ore exposure is currently exceeding model predictions. The operation commissioned a drill in the quarter for testing and collapsing voids in the underground workings ahead of ore extraction in the open pit. This has greatly enhanced shovel efficiency while maintaining safe working conditions. Towards the end of the year three second-hand