Lihir Gold makes progess in PNG

Lihir Gold (LIHRY-Q) is advancing the startup date for processing of oxide ore at its namesake mine in Papua New Guinea.

Construction is nearly 40% complete, and early commissioning of the sulphide processing facility should allow production from sulphide ore to begin in October 1997, rather than in December as previously expected.

Consequently, production forecasts for 1997 have risen to 175,000 oz. from 120,000 oz. gold. Output in 1998 is projected at 550,000 oz.

At the end of the second quarter, Lihir completed a hedging program required under the financing facility. For 1998, the program involves 150,000 oz.

gold, mainly in the form of put options.

The caldera-related deposit exists on Lihir Island, 600 km northeast of mainland PNG At full production the mine should produce 625,000 oz. gold annually. The total resource is estimated at more than 40 million oz.