Normandy sees low strip ratio for N. Sumatra gold project

Australia?s largest gold mining firm Normandy Mining Limited said Thursday it anticipated low strip ratio in its newly discovered deposit in Martabe gold project, North Sumatra.

Normandy?s chairman and CEO R J Champion de Crespigny when addressing annual general meeting said that the large disseminated gold mineralized zone covered an area of 7 kms by 2 kms where long intersections of 100 to 200 meters grading 2 to 3 g/t are commonly found.

?Given the topography and grade continuity we anticipate low strip ratios and the potential to develop a heap leach - dump leach operation.?

Scoping studies for the Martabe project are in progress for a low capital, low cash cost operation in what we believe to be a favorable, stable area of Indonesia with good infrastructure,? he said.

Martabe project is located close to the Trans-Sumatra highway and the national electricity grid system, about 40km inland from the port of Sibolga, northern Sumatra.

Normandy has 90 percent stake in PT Horas Nauli, the project operator, while Austindo Nusantara Jaya, an Indonesian company, which also controls Australian listed mining firm Austindo Resources Corporation holds the remaining 10 percent.

Normandy, together with Franco-Nevada Mining are currently the subject of takeover by US mining giant Newmont Mining Corp to form the world?s largest gold producer. (alex)