Mt Muro Gold fails to meet production target in Q2
Tuesday, July 31 2012 - 03:04 AM WIB
ASX-listed gold miner Straits Resources Limited reported that its 100 percent subsidiary PT Indo Muro Kencana produced only 4,896oz AuEq in the June 2012 quarter from Mt Muro Gold mine located in the northern part of Central Kalimantan compared to the first quarter of 7,628oz AuEq.
However, by late June sufficient ore had been exposed by waste stripping, and ore stockpiles had been built to enable the plant to operate full time, adding that Mt Muro has produced approximately 5,000oz AuEq in July.
The production target for the September 2012 quarter is 14,000-16,000oz AuEq. The company targets to increase target to 90,000 to 110,000oz AuEg in 2013.
It said that the production and waste movements were significantly less than planned and as a consequence the plant operated on a campaign basis in the second quarter due to low ore availability.
?The low waste removal was exacerbated by difficulties in obtaining the critical supply of fuel and consumables, due to low river levels. In July it rained sufficiently for the river level to rise, thus enabling fuel to be transported to site by river,? it said, adding that the operation is now aiming to be cash flow positive at the operating level.
| Units | June 12 Qtr?? | Mar 12 Qtr | FY 2012 Full year | FY 2011 Full year | |
| Ore Milled | tonnes | 108,951?? | 143,471 | 653,409 | 325,035 |
| Grade
|
|||||
| - Gold | g/t Au | 1.06 | 1.20 | 1.18 | 2.5 |
| - Silver | g/t Au | 30.6 | 40.2 | 34.4 | 28.9 |
| Recovery | ? | ? | ? | ? | ? |
| - Gold | % Au | 93.4%?? | 93.7% | 93.4% | 92.6% |
| - Silver | % Au | 77.9%? | 75.8% | 72.5% | 72.9% |
| Production | |||||
| (Gold)** | oz Au | 3,326 | 5,030 | ?23,160 | 25,022 |
| (Silver) | oz Ag | 86,374? | 131,803 | 529,130 | 228,502 |
| Gold Sold | oz Au | 3,761? | 5,690 | ?23,950 | 25,911 |
| Silver Sold | Ag oz | 100,000?? | 122,552 | 528,886 | 189,337 |
| **Production reported is gold poured | |||||
Editing by Adianto P. Simamora