Austindo secures fund for Cibaliung gold project

Australian listed mining explorer Austindo Resources Limited on Monday said it had secured A$1.6 million fund from two Australian-based underwriters for its Indonesian gold project.

?Austock Brokers Pty Ltd and Taylor Collison Limited have together confirmed their commitment to underwrite $1.6 million of our Share Purchase Plan,? Austindo said in a statement.

Austindo is in the process of completing its Bankable Feasibility Study (BFS) in Cibaliung Gold Project in Banten Province.

The company said that combined with the placement of $1.7 million as announced earlier, it expected to raise a total of $3.3 million to meet its working capital requirements for the project.

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.

It is anticipated that the BFS will be completed in the first half of 2004.

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