The world's largest gold miner, Newmont Mining Corp, announced a 33 per cent rise in equity gold reserves in Ghana.

The company said these equity reserves would rise by four million ounces, or about 33 per cent, from 11.9 million ounces at the end of 2003 to about 16 million ounces at the end of calendar 2004.

Newmont also updated its equity gold sales forecasts for 2005 and 2006 to about 6.75 million to 7 million ounces per year, down slightly due to mine plan revisions, including additional stripping at Gold Quarry, reflecting increasing reserves, and a delayed start up at Boddington.

Chairman and chief executive Wayne Murdy said Newmont remained "committed to optimising our production profile and maintaining our focus on capital discipline to maximise returns for our investors".

"Continuing exploration success in Ghana will provide the foundation for our next core operating district," he said.

It estimates that at its wholly owned Ahafo project, year-end 2004 reserves will rise by about 1.5 million ounces to more than 9 million ounces.

The Ahafo project is expected to be completed and in production by the second half of 2006.

Newmont expects initial capital expenditures of $400 million to $425 million.

During the first five years of operation, annual gold production is expected to average about 500,000 to 550,000 ounces at total cash costs of approximately $US200 per ounce.

Engineering studies continue to focus on maximising returns and optimising mine life, including the evaluation of a second milling facility.

At Newmont's 85 per cent owned Akyem project, equity reserve additions of about 2.5 million ounces are expected, taking year-end 2003 equity reserves of 4.3 million ounces to almost 7 million ounces.

Newmont said a development decision on Akyem is anticipated by the end of 2004.

"Ahafo and Akyem are among the next generation of higher margin properties that drive our outlook for equity gold sales of over 7 million ounces for 2007 and beyond," Mr Murdy said.