Drilling continues in Mount Muro Gold project

Australian mining firm Straits Resources said drilling had continued at its Mt Muro Gold project in Central Kalimantan throughout the first six months of 2004, concentrating on the Juking Sopan and Tumbang Lahung areas.

The firm said in its half-year report submitted to the Australian Stock Exchange that a total resource of 109,000 gold equivalent ounces has been defined on results to date on the main Tasat vein and an additional 219,000 ounces near mine resource resulting in total resource of 319,000 ounces.

Drilling continues in the Tumbang Lahung area on the Botol vein in addition to infill drilling at Tasat. A further resource upgrade based on this drilling is expected in the September 2004 quarter.

Based on existing resources and anticipated results, detailed planning work has commenced to re-start mining operations. This decision is expected towards the end of September 2004 with the potential for mining operations to recommence early in 2005. Initial production is likely to be at a reduced capacity, a strategy designed to fund past and future holding and exploration costs until such time as sufficient resources are defined to enable the plant to operate at full capacity.

The company has a 70% interest in PT Indo Muro Kencana which operates the Mt Muro Gold Project under a third Generation Contract of Work agreement with the Government of the Republic of Indonesia. (hotma)