Archipelago says N. Sulawesi gold mine to start production by year-end

London Stock Exchange-listed firm Archipelago Resources Plc reported on Tuesday that its 85 percent-owned Toka Tindungh gold mine in North Sulawesi is targeted to start production end of this year.

?Over 670 people are now engaged on, or in supporting, construction activities at the processing plant site and the financial support and assistance of major Indonesian shareholder, PT Rajawali Corpora was acknowledged in achieving this progress,? the Company said.

Pre-strip mining has also started at the Toka Tindung deposit in preparation of ore mining in the second half of the year, it added.

The project has a resource of 1.75m ozs gold of which 1.1m will be mineable by way of 5 open pits with processing through a centralized CIL plant with production targeted at an average rate of 160,000 oz of gold equivalent per annum over the first 6 years of production.

The Company will also be commencing exploration in the third quarter with a focus on immediate extensions of the ore bodies as well as more remote and unexplored parts of the tenements, it said.(alex)