Austindo secures processing plant for Banten gold project

Australian Stock Exchange-listed gold miner Austindo Resources Corporation announced on Friday that it had agreed to buy used gold processing plant to be relocated to its Cibaliung gold project in Banten province.

Austindo said the plant, which is currently located at Mount Olympus Mine in Western Australia, was purchased for AUD$2.575 million from Sipa Exploration NL.

Austindo said the plant had been independently inspected and was in good condition. The plant had been on care and maintenance for the past 12 months.

The company said the purchase price, together with transportation and modification costs was lower than allowed for in feasibility study as costs estimates were based on new equipments.

? Importantly the acquisition of this plant will also provide higher degree of certainty in the timing and cost deliverability, at the time when many other projects are impacted by rising costs and longer lead times in construction due to delays in delivery of new equipment,? the company said.

Cibaliung project is being developed by Austindo, which has 84 percent stake in the project, together with state nickel and gold miner PT. Aneka Tambang Tbk. which holds the remaining balance. The project is high grade epithermal gold and silver and will operate for at least 6 years producing 70,000 equivalent gold ounces per annum based on current reserves. The project is expected to commence production next year. (alex)