Lincoln to start production from C. Kalimantan iron ore mine

ASX-listed firm Lincoln Minerals Limited said it would start mining at its Central Kalimantan iron ore mine after permit to transport the ore was received and the road is now ready to be upgraded.

The company said that the Desa Mirah Mine will initially produce high grade iron ore (more than 62 percent Fe) at the rate of 20,000 tonnes per month.

Desa Mirah Mine is being developed jointly by Lincoln Minerals and Samusa Corporation through an Indonesian mining company, PT. Samusa Bintang Mandiri, jointly owned by Lincoln (45%) and Samusa (55%).

In addition to the mining and exploration concessions, Samusa has also developed a stockpile site, weighbridge and barge loading facility at Pundu approximately 70km from the mine site on a river that flows down past the port of Sampit.

?Receipt of this permit will now allow the road to be immediately upgraded followed by mining and transport of the existing ore stockpile. It is expected that the road works will only take a few weeks to complete. A 3-month contract has been agreed to with a Chinese buyer to purchase this ore consignment FOB (Freight on Board) barges at Pundu Jetty,? it said.

Regional field reconnaissance by Lincoln Minerals has identified high grade iron ore outcrops both within and outside the exploitation area extending over an area with a strike length of at least 3.5 km. The iron ore is of lateritic style, and forms a relatively flat-lying sheet beneath thin alluvium but cropping out along gullies and hill slopes.

A ground magnetic survey has recently commenced to more accurately define the boundaries of the iron ore. The ore is weakly to moderately magnetic and the survey will be completed in 2-3 weeks.

Upon completion of the magnetic survey, it is planned to commence a drilling program as soon as possible to define the depth, thickness and grade of the resource.(denny)