Austindo says Banten gold project attracts financiers

ASX-listed mining firm Austindo Resources Corp. said on Monday its Cibaliung gold project in Banten province had attracted several major financial institutions.

?The company had held several preliminary discussions with several major banking groups that provide funding for resource project. It is pleasing to report that Cibaliung gold project is generating interest amongst potential lenders and none of them expressed any reservations about funding resource projects in Indonesia. These discussion will be on going in with a view to the company selecting one or more groups as the bankable feasibility study (BFS) is progressed to completion,? said the company in a report to ASX.

Austindo is expected to complete the BFS on Cibaliung gold project in the first half of 2004.The company is in the process of raising US$3.2 million, that would be used mainly to finance the project?s BFS.

Austindo completed a preliminary feasibility study of its 75 percent-owned project earlier in the year based on a resource of 610,200 equivalent gold ounces. The company reported 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.

Canadian-based International Antam Resources, a subsidiary of JSX-listed state miner PT Aneka Tambang has the remaining 25 percent stake in the project. (alex)