Croesus rides Norseman to profit

Tuesday, 1 February, 2005 - 21:00

CROESUS Mining has announced a $5 million net profit for the first half of 2004-05 on the back of half-year gold production of 112,705 ounces at a cash cost of $379 an ounce.

Norseman operations produced record half-year gold production of 73,382 ounces at $337 an ounce.

The company’s recent drilling results suggest its Norseman operation’s ore reserve position of 532,000 ounces is likely to be added to.

Croesus expects to produce approximately 200,000 to 220,000 ounces for the 2005 financial year.

Lower gold production is forecast in the second half of 2004-05 due to lower throughput at Davyhurst and reduced production from the Bullen underground mine at Norseman until the St Patricks orebody is fully developed later in the year.