Oxiana Limited updates Indonesian mining projects

Below is an excerpt taken from Australian mining company Oxiana Limited quarterly report released Wednesday

 

Martabe Gold Project (North Sumatra)

 

Feasibility Study

A technical review of the feasibility study work conducted to date was ongoing throughout the quarter. The resource estimates were found to be robust. Further infill drilling will now take place to upgrade more material into the ‘Measured’ resource category.

 

Work on assessing gold processing studies was completed, with a conventional carbon-in-leach processing circuit selected as the preferred treatment option.

 

Engineering design and quantity estimates for concrete and structural steel work for the plant were well advanced with final reviews of each underway.

 

Completion of the Martabe feasibility study is anticipated later in the year.

 

Kalimantan Gold Agreement (Oxiana earning 66.67%)

Under the Kalimantan Gold agreement, drilling commenced testing a series of porphyry Cu-Au targets at Beruang prospect. All holes to date have intersected variably altered and mineralised volcanic units with results from the first hole reporting 44m at 0.6% Cu (from 16.6 metres) and 41.7m at 0.5% Cu (from 147 metres). Copper mineralisation is associated with stockwork quartz-chalcopyrite-pyrite and massive chalcopyrite veins.

 

Drilling utilising two rigs will continue testing a suite of high potential copper-gold targets over the remainder of the Kalimantan Gold Contract of Work area in 2007.(end of excerpt)