Aurora Gold seeks to dispose of C. Kalimantan goldmine
Monday, May 13 2002 - 05:00 AM WIB
Aurora Gold has 100 percent stake in PT. Indo Muro Kencana, the operator of Mt. Muro goldmine, which is scheduled to be closed this year. But last year, the company discovered the potential highly prospective ?Mt Muro style? gold mineralisation in a region designated as the "Western Areas" of the Contract Of Work and located approximately 12 kilometres due west from the Mt Muro treatment plant site.
Aurora Gold?s chairman Rory Argyle addressing the company?s annual general meeting in Perth said that the company had decided not to fund additional expenditure on these areas and, accordingly, expressions of interest were sought from other mining companies with known interests in Indonesia and an appetite for investment in mining in Indonesia.
?Discussions with third parties have ensued and Aurora is presently examining the opportunity to dispose of its shares in PT. Indo Muro Kencana, carrying with it all the rights to the remaining Mt Muro operation including the Western Areas and the plant,? said Argyle.
?Whilst the reclamation and rehabilitation work to all former mining areas remains our obligation and is now well in hand to be completed during the third quarter of this year, a sale of the Mt Muro COW Company, if achieved, would transfer the obligations to dismantle the Mt Muro plant, if indeed it is to be dismantled, to the purchaser and allow us an earlier exit. I say 'if it is to be dismantled' because the plant could be used to treat ore from the Western Areas, at some future time, should they prove economic, and in place it is an attraction to the party with which we are now negotiating. We expect to be in a position to make a further announcement on this matter during the next month, assuming a successful conclusion to our current negotiations.?
Last March, Aurora Gold had also completed the sale of its North Sulawesi gold mining project to Archipelago Gold Limited. (alex)