Austindo restarts Banten gold project development

Australian mining firm Austindo Respources Corporation NL reported on Wednesday that development works has recommenced at its Cibaliung gold project in Banten province following the company?s successful placement and right issue that raised A$20 million.

The company was forced to halt development works following 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 of the gold processing plant remains 80% complete. PT Petrosea has confirmed its commitment to complete the construction work which is expected to recommence in December 2007, the company said.

Total decline development to date has advanced to over 450 metres and stockpiling of ore is expected to commence in late 2007.

The company did not say when the first gold pour will start.

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.

The company also reported that during the September quarter, mapping and prospecting activities were continued on the northern part of its Trenggalek gold prospect in East Java.

Permitting was completed to undertake detailed exploration in the forestry production areas, which cover the greater part of the main prospects identified to-date, the company said.

Austindo has 95 percent stake at Trenggalek. (denny)