The venture, jointly owned by Placer Dome (55%), Goldfields (25%), Origin (15%) and local landowner groups (5%), produced 212,135 ounces in the June quarter compared to 180,897oz in the corresponding June 1999 quarter.

“Production this year has exceeded our expectations,” Placer Dome Asia Pacific manager, Ian Williams, said.

“We were a largely underground operation and now we are using an open pit technique.

“The open pit is now mining remnants of the underground operation and finding it is of a better grade than expected.”

Williams said the company’s gold production for the year would reach almost 800,000oz, up 50,000oz on initial expectations.

“We are still exploring Papua New Guinea and we have found there is potentially more high grade gold there,” he said.

Placer Dome’s shares currently trade at $14.50.