Finders eyeing 50,000 oz PA production from Lampung gold project

UK miner Finders Resources is hoping to be able to get its Ojolali gold project in Lampung province into production in the near term with production of 50,000 ounces per year.

The company said the recent drilling at the Jambi bulk open pit prospect confirmed wide zones of near-surface oxide gold. ?Mineralisation is found close to surface, indicating the potential for a low cost, low stripping ratio open pit operation. Successful metallurgical test work will allow the company to complete JORC standard resource estimates and commence scoping studies in Q4 2006,? the company said in an announcement last week.

The company said it also had established prospects such as Tambang and Batu Kuning, which were closely located. ?The prospects offers Finders a staged development strategy to unlock the mineral potential and generate cash flow from the mining district,? it said..

?Closely spaced drilling at Jambi has confirmed the continuity of extensive low grade oxide gold mineralization. Metallurgical testing is underway and a systematic drill out of the deposit has commenced. The Jambi prospect shows potential for early development as a low strip open cut operation,? the company said.

Finders has 72 percent stake in Ojolali project with an option for 100 percent. (alex