Lihir Gold Limited

Lihir Gold Limited

April 14, 2009 08:08 ET

LGL (Lihir Gold Limited): Ballarat Update

PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - April 14, 2009) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") announces plans to streamline operations at the Ballarat gold mine in Victoria following mixed results previously reported from early mining in the southern and central zones of the goldfield.

Following the recent delayed completion of underground ventilation infrastructure, the Company has resumed development work to open up the larger ore zones located in the northern areas of the mine. This is expected to be achieved by the end of the year.

Ore production will be lower than planned this year, with contract mining to cease and processing scaled back accordingly during the northern development phase.

This change, along with the completion of capital infrastructure projects, will reduce costs and current operating losses and conserve capital to help safeguard the future of the project.

Mining and processing in the current year at Ballarat is aimed at production of up to 50,000 ounces. However, this is dependent on the development of effective mining techniques in the central and southern zones and accessing commercial quantities of ore in the northern zone an accurate assessment of which will not be possible until later this year.

Overall expected LGL group gold production in the current year remains unchanged at between 1 million and 1.2 million ounces. First quarter production for the group has exceeded 300,000 ounces.

The full first quarter production report will be released on April 30.

Contact Information

  • Lihir Gold Ltd (Brisbane)
    Joe Dowling
    GM Corporate Affairs
    Mobile: 0421 587 755
    Lihir Gold Ltd
    Joel Forwood
    Investor Relations Manager
    0438 576 879
    Lihir Gold Ltd (Toronto)
    Greg W Taylor
    (905) 337-7673 or Mobile: (416) 605-5120