Archipelago announces gold intersection finding that could extend minelife

London Stock Exchange-listed mining firm Archipelago Resources plc announced Wednesday the intersections of high grade gold mineralisation comprising extensions to the main mineralised system at its Toka Tindung Gold Project in North Sulawesi.

The company said drilling rig brought to site to undertake grade control drilling in preparation for the commencement of mining in the second quarter of this year, had succeed in testing for depth extensions to mineralisation beneath the western side of the proposed Toka Tindung starter pit.

The company said the intersection could extend the mine life beyond its initial six years. Further exploration drilling will be undertaken in due course subject to drill rig availability, said the company.

The Toka Tindung Gold Project has a resource of 1.7M ounces (ozs) of gold, of which at least 0.9M ozs will initially be mineable by open pit. The project is targeted to commence production at the rate of 150,000 ozs per annum increasing to a target of 160,000 ozs per annum in subsequent years. Subject to continuing construction progress, production remains on schedule to commence in the third quarter of 2007.

Archipelago has 85 percent stake at Toka Tindung project.(alex)