Austindo expects first gold pour from Banten mine 2007

Australian miner Austindo resources Limited said on Thursday first gold pour from its Cibaliung Gold project in Banten province is expected in the first quarter of 2007, or about three months late than the original schedule.

The underground mine, which is 89.75 percent woned by Austindo, will produce 70,000 ounces of gold equivalent during its 6 years mine life with cash operating cost of around US$200 per ounce.

The company said that the processing plant which was bought from an Australian mine had been dismantled and was ready to be shipped to Indonesia.

The company said as stipulated by financing agreement, it had hedged 185,000 ounces of gold for delivery from June 2007 to December 2010 at average price of US$651 per ounce.

The company had just completed private placement to raise A$12 million. The proceed will be used to partly finance Cibaliung mine development and to finance exploration activities and working capital, said the company.

The company also said it planned aggressive drilling campaign in Cibaliung to increase the mine?s reserves and in its Pekalongan and Trenggalek gold tenements. Both are in Central Java. (alex)