Fourth Quarter Activities Report

Document date:  Tue 21 Jul 1998
Published:  Tue 21 Jul 1998 00:00:00
Document No:  119072
Document part:  D
Market Flag:  Y
Classification: 

NORMANDY MINING LIMITED                       1998-07-21  ASX-SIGNAL-G

HOMEX - Adelaide                                                      

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METALS

At Golden Grove, mill throughput increased 15% and included an 
initial 51,000 tonnes of Gossan Hill Panel Core.  With the Scuddles 
mine plan also in higher grade stopes, zinc concentrate production 
was 49 percent higher.  A high precious metal by-product copper 
concentrate was also produced.  Mill throughput expansion to 1.2Mtpa 
remains on schedule for October 1998.

At Woodcutters,the zinc cash cost at US$38c/lb was the lowest 
achieved, reflecting small improvements in mill throughput and head 
grade.

At Tennant Creek, mill throughput comprised Gecko ore and stockpiled 
Orlando open pit ore.  Milling of 15,198 tonnes of Gecko 5 level 
gold ore yielded 8,321 ounces.  Gecko is scheduled  to close at the 
end of next quarter, with milling of Orlando stockpiles due for 
completion early in the new Year.

GOLDFIELDS POWER AND PIPE

Gas supply facilities were commissioned for the Cawse and Murrin 
Murrin nickel laterite projects.  The power station continued to 
operate satisfactorily, with availability at 99.26%.

DEVELOPMENT - GOLD

At Boddington, due diligence on the adjacent Hedges gold mine 
acquisition is nearing completion.

At Pajingo Operations, the Nancy North development is progressing 
well, with deliniation drilling about to commence.  The mine 
expansion study is complete and the mill expansion is being costed.  
the feasibility study is scheduled for completion in October 1998.

At Callie, the decline advanced to 482 metres vertical depth.  
Mining of the first underground stope commenced.  Consideration is 
being given to a redesign of the decline to extend it to 660m 
vertical depth by mid-1999, allowing deeper drilling to determine 
the optimum position for a possible shaft development.

The second stage of the mine optimise study is on schedule for 
completion at the end of September.  Three operating scenarios are 
being assessed, with production rates up to 2.5Mtpa and a range of 
open cut and underground mining rates.

At Martha, a court hearing is set to hear an appeal against the 
granting of resource consent for the mine expansion and against 
related mining conditions.

At Perama Hill (Greece, Normandy LaSource effective 44.4%) infill 
drilling on a 50m by 50m grid is complete.  Engineering and 
geological scoping studies are underway and are expected to be 
completed next quarter, allowing permitting to progress.  
Environmental baseline studies commenced.

The Ovacik mine (Turkey, Normandy LaSource 66.7%) remains on care 
and maintenance.  Approvals to commence operations are awaited.

Feasibility activity at Mastra (Turkey, Normandy LaSource 66.7%) 
continues to be suspended pending resolution of the situation at 
Ovacik.

At Angovia (Cote d'Ivoire, Normandy LaSource 90%) site works commenced
on the 40,000 ounce per annum heap leach project.  Initial gold 
production is scheduled for the March 1999 quarter.

At Yamfo-Sefwi (Ghana, Normandy LaSource 41-45%) the Centenary 
feasibility study was extended to include the growing resources 
position of Kenyase, 35km along strike.  Resource upgrades, including 
Subenso, are nearing completion, with a full feasibility study 
scheduled for 1999.

METALS

The Gossan Hill development at Golden Grove is progressing well.  Both
committed and actual costs are under budget and the overall schedule 
is in line with the expanded plant commissioning date of October 1998.

At Kasese (Uganda, Banff Resources 55%) site works progressed at the 
US$1110 million 2Mbpa cobalt project.  Civil works are essentially 
complete and erection of the main process plant structures is under 
way.  Capital committed is 66% of budget, with incurred cost 47%.  
Shipping and customs clearance delays continue, but the initial 
production target date (March 1999) remains intact.

MAGNESIUM

At Gladstone (Queensland, Normandy 68%, direct and indirect) 
construction of the demonstration plant is complete and commissioning 
is under way.

The concurrent feasibility study is progressing on schedule.  A 
contract to supply steam and electricity for the proposed commercial 
plant is nearing completion which will determine the plant location 
and allow appropriate applications for environmental and development 
approvals to be lodged.

more to follow


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