Archipelago to commence N. Sulawesi gold production mid-2007

UK miner Archipelago Resources PLC said gold production from its toka Tindung mine in North Sulawesi would commence mid-2007, or around 6 months later than previously scheduled.

The company said in a report released last week that the project is targeted to commence production at the rate of 130,000 ozs per annum increasing to a target of 160,000 ozs per annum in subsequent years. The Toka Tindung Gold Project has a resource of 1.7M ozs of gold, of which at least 0.9M ozs will initially be mineable by open pit

The company said construction of support building facilities were completed and a US$2.2m tender for the supply and installation of concrete for processing plant foundations, retaining walls and the ore reclaim tunnel has been accepted from Bakrie Constructions and work will commence in July. A US$3.5m civil earthworks contract for the construction of roads, dams and drains is being finalised with Leighton Contractors Indonesia and work is scheduled to start in July, said the company.

The company also said that A Master List and Import Permit allowing importation of plant and consumables necessary to construct the processing plant have been received from Indonesian government.

?Shipment of the El Tambo plant in three separate lots is expected to commence in the third quarter of 2006. In addition local government approval has been granted for the construction and operation of a jetty close to the Project site for landing the plant and consumables required for construction and operation of the mine and processing plant,? said the company.

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