Pelsart resumes works to develop Kalimantan gold mine

Australian junior mining firm Pelsart Resources NL announced on Friday the resumption of work to complete the Mirah Gold Project in South Kalimantan.

Recent activities have included a review of the project by Perth consultants, Snowden to assess the condition of the partially completed plant and infrastructure and the costs for completion, the company said. Snowden has been also been commissioned to update the resource estimate and re-optimise the mine plan and scheduling.

?Discussions are underway with an engineering contractor to complete the on-site process facilities with recent schedule indicates production will commence in first quarter of 2008,? the company said without giving further detail.

Pelsart has 45 percent stake in Kasongan Bumi Kencana, which operates the project.

The company also reported that it was seeking a partner to undertake further exploration and start feasibility activities next year on Meratus and Kusan gold prospects, both are also located in South Kalimantan.(alex)