Austindo says resources increases significantly in Banten gold project

Australian listed gold explorer Austindo Resources Corporationn NL confirmed Tuesday that the overall inferred and indicated resources at its Cibaliung gold project in Banten province was 4,496,000 tons of gold ore at 3.52g/t Au and 37.2 g/t of Ag. The resources, said the company, was equivalent to 509,000 troy once of gold and 5.38 million ounces of silver.

Austindo said during the April-June quarter, 13 diamond drill holes were completed for a total of 3,544 meters and a high grade core to each of the Cibitung and Cikoneng Shoots was confirmed.

According to the company, within this overall resource, at a 3g/t Au cut-off, two shoots - Cikoneng and Cibitung - comprise a substantially higher grade resource: 1,299,000 tons at 10.42 g/t Au and 60.7 g/t Ag, which was equivalent to 435,000 ounces of gold and 2.54 million ounces of silver.

The figure, said the company, was a 40 percent increase equivalent to 123,000 ounces of gold since the last resource statement in November 1999.

Total exploration expenditure for the quarter was A$673,675.

The company said that in accordance with the terms of the Joint Venture Agreement the company's interest in the Cibaliung Project increased to 69.35 percent at the end of the quarter due to sole funding of joint venture expenditure.

International Antam Resources, a subsidiary of state miner PT Aneka Tambang Tbk which is listed in the Canadian venture Exchange, holds the remaining 30.65 percent interest in the Cibaliung project. (alex)