G-Resources set to produce gold from Martabe in July

By Romel S. Gurky

Hong Kong Listed gold miner G-Resources Group Limited has recently announced that gold production at its Martabe gold and silver project in North Sumatra, Indonesia is on schedule to be first initiated this July.

In its quarterly update covering the first three months of 2012, the Asia-focused mining corporation said that mining activities were ramping up and that a stockpile of gold ore had been established, and it is currently connecting power to the processing plant while commencing commissioning activities.

Exploration success continued to be seen in and around the deposits and regionally, with good gold drilling results recorded.

While there had been some increase in capital costs, in line with overall construction inflation, G-Resources stated to be well funded through to first gold and early cash flow. The first drawdown occurred on the US$100 million credit facility provided by the company?s banking syndicate.

"We saw significant progress at Martabe in the first few months of this year and are now in the final countdown to produce the first gold in July,? said Chief Executive Officer Peter Albert , adding that the company now has electrical and instrumentation installation work to complete. ?It?s a very exciting time for everyone on site and the company overall,? he said.

?Our exploration team continues to bring in excellent drilling results from in and around the existing Martabe deposits and from the tenement area regionally. This work continues to demonstrates substantial upside to our existing gold and silver resources and reserves,? he added.

Editing by Er Audy Zandri