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AUSTRALIAN GOLD PRODUCTION DROPS TO 19 YEAR LOW.
PERTH, June 2 Asia Pulse - Australian gold production is losing its shine, having dropped sharply in the first three months of calendar 2008 to its lowest level in 19 years, a report finds.
While wet weather and mine closures caused some of the fall, the high gold price was also having an effect.
Miners were reducing their average grades to recover more gold over the life of the mine allowing them to take advantage of high gold prices.
Mining consultants Surbiton Associates found gold output for the March quarter was 53 tonnes, or about 10 tonnes or 16 per cent down on the December quarter figure.
The March quarter figure was about seven tonnes or 12 per cent down on the first three months of 2007.
Surbiton director Sandra Close said the falls were "nowhere near as bad as they seem".
"The primary cause of the sharp drop in output was the lower average grade of ore treated," Dr Close said.
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Source: HighBeam Research, AUSTRALIAN GOLD PRODUCTION DROPS TO 19 YEAR LOW.