Ausenco Minerals executes Martabe EPCM contract

Global diversified engineering services group, Ausenco Umited announced Friday its Ausenco Minerals business had executed contracts for the Engineering, Procurement and Construction Management (EPCM) services for the Martabe gold/silver project in North Sumatra.

Ausenco Minerals will be managing, on an EPCM basis, US$237 million of the project development activities for the process plant and related infrastructure at the 4.5 mtpa Martabe gold and silver project. The processing plant will be a standard crush, grind, and Carbon-in-Leach gold processing circuit. The plant will process ore at an average head grade of 1 .9g/t gold and 25 g/t silver. Recoveries will average 76% gold and 55% silver. The facility will be designed to enable future expansion.

The US$310 million Martabe project is expected to produce about 200,000 ounces of gold and 2,000,000 ounces of silver over a nine year life from project completion in late 2009, the company said.

The Martabe project is located on the western side of the island of Sumatra in the province of North Sumatra, in the Batangtoru sub-district. The project is established under a sixth generation contract of work (CoW) which signed in April 1987. The CoW is approximately 1,600 kms. (denny)