Finders delays Sumatra gold exploration to conserve cash

Australian mining firm Finders Resources said on Thursday that it would slow down exploration activities to surface work at its Ojolali gold and silver project in Lampung to conserve cash.

The company, however, said it was confident that with the 140,000 Oz oxide gold resource established at Jambi and new targets indicated by surface work, it had a basis for a mining operation.

?With exceptional growth potential for new discoveries in the 30 sq Km area of mineralization. Our strategy at Ojolali is to resume exploration drilling after cash flow is established from the Wetar demonstration plant, with the aim of completing feasibility studies and permitting for a small scale start up operation by the end of 2009, with initial production in the second half of 2010,? it said.

The company is currently preparing feasibility study on its Wetar copper project in Maluku with the aim of bringing the project to production in 2009. (alex)