Avocet Mining (LSE: AVM) was little changed in early trading after releasing a first quarter update for the three month period ended June 30, 2009. The junior gold producer reported first quarter gold production of 27,563 ounces, up 1% on the previous quarter. Total cash costs before adjustment for deferred stripping fell 2% compared to the previous quarter to US$597/ounce. Avocet also benefited from a stronger gold price – the average realised gold price in Q1 was US$925/ounce, $9/ounce higher than the previous quarter. Last night gold spot closed just under US$950/ounce. Overall, gold production results from Avocet’s current operations were mixed. Higher grades were achieved at the Penjom Gold Mine in Malaysia, but recoveries fell from 85% to 80% thanks to higher carbonaceous ores; production slipped 3% to 15,664 ounces. At the North Lanut Gold Mine in Indonesia, production improved by 5% thanks in part to a new leach pad. The recently acquired Inata Gold Project in Burkina Faso offered some positive news today. After Avocet took over the project, there were concerns that first gold pour would be severely delayed after the company sacked the engineering firm building the mine. Avocet maintained its previous guidance however, and said the new team overseeing construction of the mine was in place and did not see any material delays in the timeline to first gold pour, which is expected in Avocet’s financial Q3 (Oct-Dec). “The continuing improvement at North Lanut reflects ongoing work by the mine's management team to optimise leach practices and to fully exploit the new leach pad completed in March,” Jonathan Henry, Chief Executive Officer, commented. “Elsewhere, management is focused on the delivery of a timely and successful commissioning of Inata and higher gold production at Penjom. The efforts of Penjom's management team are expected to yield higher gold production in the second half of the year, following completion of a more reliable resource model in the coming months.”

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