Australia's second-largest gold play reported today the three months of production to the end of September came to 233,346 ounces of gold, down almost 61,000oz on the June quarter.

The third quarter result takes production for the first nine months of the year to 845,000oz, leaving Lihir on track to meet record full-year production of more than 1Moz.

Production from its flagship Lihir Island operations for the quarter was 169,000oz, down 23% on the previous quarter as a result of scheduled routine plant maintenance.

Lihir is still aiming to produce 1Moz on average from its namesake project from 2012.

Production at Bonikro in Cote d'Ivoire fell 27% quarter-on-quarter to 32,000oz due to the transitioning of mining and processing from oxide ore to fresh, hard rock which resulted in reduced mill throughputs.

In Australia, the Mount Rawdon operation in Queensland lifted output by 5% on the June quarter to 30,409oz.

The sale process for Lihir's Ballarat mine continued with a number of offers made during the quarter.

The sale should be completed early in the New Year.

Gold sales for the September quarter was 221,000oz at an average realised price of $US955 an ounce, up from $900/oz in the June quarter.

Full-year production remains unchanged at 1.0-.2Moz, including 770,000-840,000oz from Lihir Island, 130,000-160,000oz from Bonikro and 90,000-100,000oz from Mount Rawdon.

Total cash costs per ounce are forecast to remain below $400/oz for the year.

Meanwhile, Lihir reported a 7.5 million ounce, or 36%, ramp up in the gold reserves at Lihir Island operation to 28.8Moz at June 30, 2009.

The reserve increase was based on recent drilling results, an increase in reserves inventory and a rise in the long-term gold price assumption from $675/oz to $800/oz.

Lihir also announced it would pay an interim dividend of 1.5c per share on November 30.

"The decision marks a major milestone in the development of the group and reflects the strong progress achieved in rebuilding and reshaping the company over the past four years," Lihir managing director Arthur Hood said.

"The improved reliability of production at Lihir Island, coupled with diversified income streams created by operating mines in three countries and the strengthening of the company's balance sheet over recent years have provided the basis for the decision."

Hood said the company aims to sustain dividend payments into the future.

Shares in Lihir dipped A7c to $2.99.