Archipelago cleared to develop N. Sulawesi gold project

UK miner Archipelago Resources Plc reported on Tuesday that it received a Letter of Support for development of the Toka Tindung Gold Project from Provincial Government of North Sulawesi.

The company said the Letter was a result of discussions that have taken place between representatives of the Provincial Government of North Sulawesi and the Central Government Departments of Energy & Mineral Resources and Environment.

Furthermore the Environment Minister has issued a Decree approving the AMDAL's (environmental impact statements) previously reviewed and found acceptable by the Environment Department's AMDAL Assessment Commission.

The company has already resumed activities including negotiations with engineering companies regarding completion of construction of the processing plant and is also in discussion with prospective project financiers. Subject to continued good progress and project finance the company is targeting gold production in 4th Quarter 2010, the company said.

The company said earlier that Toka Tindung will produce at an average annualised rate of 160,000oz gold equivalent for the first six years. (alex)