Cibaliung gold project BFS completed

Australian Stock Exchange-listed mining firm Austindo Resources Corp. NL announced Tuesday that bankable feasibility study (BFS) on its Cibaliung gold project in Banten province had been completed.

The company said it and its joint venture partner JSX-listed state miner PT. Aneka Tambang Tbk. are now reviewing the draft BFS.

Austindo said permitting and associated approval for the project have been ongoing and are well advanced. It also said two banks have been short-listed to provide proposal for the debt financing components of the project and will shortly commence detailed review on the FS and project due diligence.

Austindo did not give further detail about the results of the BFS, but earlier pre-feasibility study result suggested mine life 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

Cibaliung project has resources of 1.8 million tons at 9.6 g/t Au and 80 g/t Ag within two epithermal high grade gold-silver shoots containing 554,500 oz gold and 4.62 million oz silver.

Austindo has 82.25 percent stake in the project, with Antam has the remaining 17.75 percent.(alex)