Archipelago Resources buys more Chilean plant, equipment for N. Sulawesi gold project

London Stock exchange-listed gold miner Archipelago Resources plc announced Monday it had reached agreement with Barrick?s Chilean subsidiary Compa?ia Minera El Indio (CMEI) to acquire further gold processing plant including Thickener, Leach, Carbon stripping and Gold Room equipment from CMEI?s El Tambo Gold Project in Chile (Phase II Purchase).

The equipment, said the company, will compliment crushing and grinding equipment purchased earlier this year from the same operation (Phase I Purchase) and together will constitute the core items of a complete processing plant suitable for operation at the company?s Toka Tindung Gold Project in North Sulawesi.

? Dismantling and transportation contracts are finalized and work has begun with the target of completing the dismantling by the end of this year. The machinery will be cleaned and packaged in the Port town of Coquimbo where together with Phase I equipment acquired from El Tambo earlier this year, it will await shipment to the company?s project in Indonesia,? said the company in an announcement.

The total cost of the acquisition, dismantling and transportation to Coquimbo will be approximately GBP 1 million.

Archipelago is currently completing due diligence studies as a necessary pre-requisite for project financing of Toka Tindung. The project has a resource of 1.75 million oz of gold equivalent of which at least 0.9 million oz will initially be mineable by open pit. The project is targeted to produce at least 160,000 oz per annum for an initial 6-year mine life commencing in early 2006.

Archipelago owns 85 percent of Toka Tindung project. (alex)