Gunung Rosa metallurgical studies indicate >85% gold recovery

By Peni Pedriawan

Australian mineral resource exploration Paramount Mining Corporation Ltd announced the interim results from ?Phase I? of the metallurgical test-work program being conducted by SGS Perth on the 600kg Gunung Rosa underground bulk sample showed that >80% of the gold is relatively coarse and resides in the >38 micron fraction.

The test work indicates that grinding the ore to 80% passing 75 microns and applying Carbon-in-Leach cyanide leaching followed by sequential flotation, extracts over 82% of the gold to bullion and produces several commercially tradable base metal concentrates with the following overall metallurgical recoveries having so far been achieved in the laboratory

The Chief Executive Officer and Managing director of the company, Terry Holohan, said today, ?I am pleased with the recoveries the metallurgists are achieving for all the payable metals using standard unit operations as commonly practiced in Indonesia. In particular it is pleasing that 82% of the gold will report to the bullion which means quick cash-flow and the ability to refine the gold within the Country. Over the next few months we will continue to work diligently in the laboratory to improve the metallurgical efficiencies further.

Mo Munshi, Chairman added, ?Given it is the revenue side of the project?s financial equation that has the biggest impact on the profitability of a mine, the excellent recoveries so far achieved, coupled with the commonly held expectation that in real terms the gold price will increase over the early years of this project, will have a significant positive impact on the return on investment for the Gunung Rosa project.?

Editing by Adianto P. Simamora