Australia's Straits Resources, Abelle commence Mt. Muro drilling campaign

Australian miner Abelle Limited said on Thursday that the company and its Australian partner Straits Resources limited had in late July commence drilling the fisrt prospect in Mount Muro gold project in Central Kalimantan.

Abelle said that the Colong prospect is one of the potential targets that had been identified by Straits as the project?s operator.

On 23 April 2003 Straits entered into a letter agreement with Aurora Gold Limited (which later merged with Abelle) to acquire a 70 percent interest in a joint venture established to explore, and if successful, to redevelop and mine the Mt Muro gold project. Under the deal, Straits is required to meet all site expenditure until the recommencement of commercial gold production, unless it chooses to withdraw from the project. Straits has the right to withdraw only after it has spent a minimum of US$1 million in direct exploration costs.

Aurora stopped Mt. Muro?s opertions last year due to reserve depletion, but had identified several potential drilling targets that might justify re-commencement of gold production.(alex)