Aurora spends $4.5 million for completion Mt Muro?s mine closure

Australian gold miner Aurora Gold Limited said on Thursday during the July ? September quarter of 2002 it had spent some US$4.5 million for completion Mt Muro mine closure in Central Kalimantan.

Aurora said the amount had mainly been used for completion of contouring and drainage earthworks for all mining areas, finalisation of all redundancy payments for the Mt Muro workforce, demobilisation of residual consignment stocks and contractor equipment and placing the project on "care and maintenance" in accordance with the government approved Statutory Mine Closure Plan.

Mining and milling operations were completed in the previous quarter with the final dore shipment being delivered to the refinery on 8 July 2002, Aurora said in a statement.

The company said Mt Muro had been placed on care and maintenance with Archipelago Resources Limited meeting the holding costs pursuant to the Heads of Agreement signed on 5 July 2002, Aurora added.

As previously reported, under the Heads of Agreement Aurora will received US$750,000 in cash within 90 days of production recommencing; US$1 million in Archipelago shares on listing; and receive an uncapped 2 percent gross royalty on gold and silver production from the prospective "Western Areas" of the Mt Muro Contract of Work.

Mt. Muro goldmine is scheduled to be closed this year due to reserve depletion. Over its 8-year mine life the mine has produced approximately 1.7 million gold equivalent ounces. (robert)