Austindo commences Cibaliung gold project bankable FS

ASX-listed gold explorer Austindo Resources Corporation NL announced on Tuesday that the company had decided to proceed with bankable feasibility study on its 75 percent-owned Cibaliung gold project in Banten province.

The company said the decision is based on an updated preliminary feasibility study which suggested a potentially economic project with upside derived from either higher gold price or increase in mineable resources from extension down dip and along strike of the Cibitung and Cikoneng shoots.

The company said the study was based on 610,200 equivalent gold ounces, an improved mining plan and reduced operating costs.

Austindo said key finding of the study included; minelife of 6 years with increased production rate of 220,000 tonnes per year with recovery of gold and silver by conventional gravity; annual production of 70,000 ounces of gold equivalent, with average operating cash cost of US$ 200 per ounce; and investment of US$ 30 million.

Austindo said the bankable feasibility study would be completed in the first half of 2004.

International Antam Resources, a subsidiary of JSX-listed state miner has 25 percent stake in Cibaliung gold project. (alex)