TIDMAVM

RNS Number : 3441W

Avocet Mining PLC

25 January 2013

2012 Fourth Quarter Production Results

Avocet Mining PLC ("Avocet" or "the Company") today announces its production and cash costs for the fourth quarter of 2012 from its Inata Gold Mine in Burkina Faso:

-- Total gold production for the quarter was 30,909 ounces at a total cash cost (including royalties) of US$1,246 per ounce. This compares with 33,067 ounces produced in the third quarter of 2012 at a total cash cost of US$937 per ounce, and with 46,102 ounces produced at a total cash cost of US$773 per ounce in the fourth quarter of 2011;

-- Gold production from the Inata Gold Mine for the year was 135,189 ounces at a total cash cost (including royalties) of US$1,000 per ounce, in line with revised guidance. This compares with 166,744 ounces at a total cash cost of US$693 per ounce from the Inata Gold Mine for the year ended December 2011.

As expected, cash costs rose in the fourth quarter due to consultant fees paid to Alexander Proudfoot, a full quarter of costs associated with the hired mining fleet and scheduled maintenance of Inata's own mining fleet. The impact of such items is expected to be lower in future quarters. In addition, movements in gold in circuit, which reflect the timing of gold pours, added approximately US$190 per ounce compared with the previous quarter. This reflects 4,568 ounces being added to gold in circuit inventory during the fourth quarter, compared with a reduction in inventory of 2,631 ounces in the third quarter. Please see Appendix 1 for further details of production and cash costs.

Avocet's financial results for the year ended 31 December 2012 will be released on 7 March 2013. A presentation to analysts will be hosted at 9.00 am on that day at the Andaz Hotel, 40 Liverpool Street, London.

FOR FURTHER INFORMATION PLEASE CONTACT

 
Avocet Mining  Pelham Bell        J.P. Morgan Cazenove       Arctic Securities  SEB Enskilda 
 PLC            Pottinger          Lead Broker                Financial          Financial Adviser 
                Financial                                     Adviser            & 
                PR Consultants                                & Market           Market Maker 
                                                              Maker 
=============  =================  =========================  =================  ================== 
David Cather,  Daniel Thöle  Michael Wentworth-Stanley  Arne Wenger        Fredrik Cappelen 
 CEO                                                          Petter Bakken 
 Mike Norris, 
 FD 
 Angela Parr, 
 IR 
-------------  -----------------  -------------------------  -----------------  ------------------ 
+44 20 7766    +44 20 7861                                   +47 2101 
 7676           3232              +44 20 7742 4000            3100              +47 2100 8500

NOTES TO EDITORS

Avocet Mining is a gold mining and exploration company listed on the London Stock Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The Company's principal activities are gold mining and exploration in West Africa.

In Burkina Faso the Company owns 90% of the Inata Gold Mine. The deposit at Inata currently comprises a Mineral Resource of 3.99 million ounces and a Mineral Reserve of 1.85 million ounces. The Inata Gold Mine poured its first gold in December 2009 and produced 135,189 ounces of gold in 2012.

Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Bélahouro region. The most advanced of these projects are Souma, some 20 kilometres from the Inata Gold Mine, and Filio, adjacent to the mine licence area, where Mineral Resources of 0.56 million ounces and 0.14 million ounces respectively exist.

In Guinea, Avocet owns twelve exploration licences in the north east of the country. Mineral Resource development has been ongoing since 2005 and the project at Tri-K is the most advanced. Within the Tri-K project, Koulékoun has a Mineral Resource of 2.15 million ounces and Kodiéran of 0.87 million ounces.

Appendix 1

Inata Gold Mine quarterly production information 2012

 
                           Q1       Q2       Q3       Q4      2012 
----------------------  ------- 
 Ore mined (k tonnes)     578      610      559      906      2 653 
 Waste mined (k 
  tonnes)                7 240    6 689    7 565    8 980    30 474 
 Total mined (k 
  tonnes)                7 818    7 299    8 124    9 886    33 127 
 Ore processed 
  (k tonnes)              608      651      643      654      2 556 
 Average head grade 
  (g/t)                   2.36     1.82     1.62     2.03     1.95 
 Process recovery 
  rate                    87%      86%      91%      83%       87% 
 Gold produced 
  (oz.)                  38 296   32 917   33 067   30 909   135 189 
 
 Cash costs (US$/oz.) 
 Mining                   332      402      374      562       412 
 Processing               283      332      279      350       309 
 Administration           122      145      167      219       161 
 Royalties                113      127      117      115       118 
 Total                    850     1 006     937     1 246     1 000 
----------------------  -------  -------  -------  -------  --------

This information is provided by RNS

The company news service from the London Stock Exchange

END

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