28.09.2004 Business & Finance

Newmont forecasts rise in Ghana reserves

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SAN FRANCISCO (CBS.MW} -- Top gold stocks shot up Tuesday after Newmont Mining said it expects its equity gold reserves in Ghana to increase by about 4 million ounces to 16 million ounces at the end of 2004.

Newmont closed up $1.69, or 4 percent, at $44.29, while Barrick Gold finished 27 cents higher at $20.27.

Newmont said its equity gold reserves in Ghana are expected to increase by about 33 percent, or 4 million ounces, from 11.9 million ounces at the end of 2003.

The mining company cited strong exploration success at its Ahafo and Akyem projects in Ghana.

Nesbitt Burns Research analyst Geoff Burns called the increase in Ghanaian reserves a "slight positive."

Newmont also updated its equity gold sales forecasts for 2005 and 2006 to about 6.75 million to 7 million ounces a year, respectively, down slightly from year-earlier levels

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