Australia?s Straits sees Mt Muro gold project as new mining center

Australian miner Straits Resources Limited said Tuesday that the first drill holes at the Juking Sopan prospect in Mt Muro gold project of Central Kalimantan have targeted the Tasat and Mandi vein system over a 400 meters strike length with potential results for the discovery of a substantial shallow gold system.

Straits said that the initial drilling results on the Tasat vein had confirmed the width and grade of the surface sampling with a number of intercepts encountered down hole, while the Mandi vein had also confirmed that the high-grade surface trench results were from large boulders sourced from nearby.

?This prospect can be a new mining center to produce ore for treatment at the Mt Muro plant,? Straits said, adding that three rigs were currently drilling at the Juking Sopan system to define the vein systems with results pending.

Meanwhile, Straits also said that a field program had begun at the Tumbang Lahung region, 12 kilometers west of the mine site where a further multiple vein system has been outlined.

?Work will focus on developing drill targets for early testing of the potential of the region (Tumbang Lahung),? Straits added.

The Juking Sopan region is located about 25 kilometers to the west of the Mt Muro mine site. In Last year, Australian miner Aurora Gold Limited, former operator, stopped Mt. Muro operations due to reserve depletion. Over its 8-year mine life the mine has produced approximately 1.7 million gold equivalent ounces.

In April 2003, Straits entered into a letter agreement with Aurora (which later merged with Abelle) to acquire a 70 percent interest in a joint venture established to explore, and if successful, to redevelop the area. (robert)