Austindo looks for partner to develop troubled gold mine project

ASX-listed mining firm Austindo Resources Limited (ARX) said on Thursday it was looking to sell part of its stake in the troubled Cibaliung gold project in Banten province to meet swelling development expenditure of the project.

The company has engaged a consultant to identify the partner.

The company also said it has completed debt to equity swap which effectively put the Australia and New Zealand Banking Group Limited (ANZ) as the company?s biggest shareholder with 25.05 percent shares.

The company?s Cibaliung underground mine project was hit by series of technical difficulties, including delay in decline development that had caused costs to soar and gold pour commencement postponed from original schedule of early 2007.

Construction work has recommenced since December 2007, but the company said first gold pour might be delayed beyond the second quarter 2008 target due to overbreak in decline development.

The company said it currently needed further funding of US$40 million for the project after spending $72.5 million since July 2005.

The Cibaliung gold project will produce some 70,000 ounces of gold equivalent annually for 6 years, with mining would be carried out by conventional underground cut and fill stopping with decline access.(denny)