Austindo verifies cash operating costs on the Cibaliung gold project

Australian miner Austindo Resources Corporation NL said on Monday the board had involved external consultants in verifying operating costs associated with the Cibaliung gold project.

The company said the operating costs have been calculated by Mining One Pty Ltd applying The Gold Institute Production Cost Standard over the life of the mine.

The Mining One Pty Ltd has now provided its final report, which has confirmed cash operating costs of US$215/once.

According the company, the cash operating costs do not include royalties payable of 3.7 percent for gold and 3.25 percent for silver.

Development of the project is well advanced and the company anticipates that first gold pour will occur late in March 2007.

Cibaliung is located in Banten province near the western tip of the island of Java, 150km from southwest Jakarta.

The Cibaliung project is being developed by PT Cibaliung Sumberdaya ? a joint venture company in which Austindo owns a 89.75 percent interest and the state-owned diversified miner PT Antam Tbk holds the remaining. (denny)