G-Resources announces significant construction progress at Martabe

Hong Kong-based gold mining firm G-Resources Group Limited announced that continued significant progress at the Martabe mine site in North Sumatra has been made.

Engineering works for the project are complete to over 85% and tailings storage facility (TSF) construction is to commence in February 2011.

Owen Hegarty, Vice Chairman of G-Resources Group Limited, stated, ?We have been making considerable progress in engineering and construction at Martabe during the 4th quarter of 2010 and the project remains on schedule to produce first gold bullion in the 4th quarter of this year.?

On the construction front, Leighton Asia has mobilized five mining equipment fleets for the plant site earthworks and mine development work. Works underway include haul road construction, pre-stripping of construction areas, bulk earthworks at the plant site and TSF preparations works. A further two fleets are due on site in early February 2011.

On the exploration front, five drill rigs are operating at Martabe completing resource definition work at Tor Uluala and exploration at Tor Uluala West, Ramba Joring and Horas. Encouraging alteration and mineralisation has been encountered; assay results are awaited. Drill targets have been defined in three regional prospects and preparations for drilling are underway.

The Martabe project currently has more than 1,200 employees and contractors working in construction, operations and exploration. In addition, a number of key individuals with expertise in mining, gold operations, and construction, have been added over the last quarter

Martabe which has a resource base of 6.5Moz gold and 66Moz silver. Already in construction, Martabe is expected to commence production in late 2011 with an annual production capacity of approximately 250,000 ounces of gold and 2-3 million ounces of silver at an estimated low cash cost of US$280/oz of gold. (alex)