G-Resources reports higher Q1 gold, silver output from Martabe mine

Hong Kong-listed G-Resources Group Ltd reported on Thursday that gold and silver output at its Martabe mine in North Sumatra during the first quarter of this year increased to 63,633 ounces and 244,383 ounces, respectively, from 23,050 ounces and 127,780 ounces in the fourth quarter of last year.

Operation cost during the quarter was within budget, with cash cost for gold production stood at US$596 per ounce, while sales revenue from gold and silver totaled $117.9 million.

The company said in the quarterly report that the Ministry of Energy and Mineral Resources has issued a 30-year production permit for PT Agincourt Resources, the operator of the Martabe gold mine. In the near future, drilling activity will be carried out at the Pahae and Tango Papa prospects as part of the exploration activity set under the company?s contract of work.

In addition, the South Tapanuli Regency administration has also issued permit to dispose excess water from the Martabe mine operation to the local Batangtoru River.

The Martabe mine has an estimated gold resources of 8.05 million ounces of gold, and 77 million ounces of silver. G-Resources Group Ltd owns 95 percent of the project, while the remaining 5 percent is held by PT Artha Nugraha Agung.

Editing by Reiner Simanjuntak