Release: Aurora Gold denies pulling out of C. Kalimantan
Tuesday, April 24 2001 - 04:30 AM WIB
Aurora Gold Ltd said Monday it wished to correct any misconceptions arising from a report aired on the ABC on Friday (20April) regarding its Indonesian mining and exploration operations.
The original ABC report said that Aurora was pulling out of Indonesia, blaming political uncertainty and lawlessness, although this was subsequently modified.
Aurora is continuing to successfully operate its flagship Mt Muro gold and silver mine in Central Kalimantan, which has been the mainstay of its Indonesian operations since 1994.
The Company announced earlier this year (16 February, 2001) that it had placed its Toka Tindung exploration project in North Sulawesi on care and maintenance and decided to sell its 85% interest in view of continuing political and social uncertainties in the region, and the failure of regional authorities to address the issue of illegal mining.
Aurora had already previously written off the carrying value of the Toka Tindung Project during the 31 December 1999 financial year because of the uncertain economic and political environment in Indonesia.
As a result, the proposed sale of Aurora's interest in the Toka Tindung Project, which had never progressed to development or operational status, will not have a negative financial impact on Aurora or its shareholders.
The Company's Managing Director, Mr Alan Scott, said the Mt Muro operation remained the Group's key asset. Last year, it produced 253,250 gold equivalent ounces, underpinning a $5.264 million profit for the Group. In the most recent March Quarter, Mt Muro produced 49,291 gold equivalent ounces and returned some encouraging exploration results.
Mr Scott said Aurora had solicited expressions of interest during the March Quarter in the Toka Tindung project, and was presently negotiating with several interested purchasers. "We look forward to announcing an outcome of these negotiations in the near future, but we remain committed to our core Indonesian operations," he said.
Aurora remains committed to responsibly developing mining and exploration projects throughout the Asia-Pacific region, as evidenced by its investment in the world-class Morobe Project in Papua New Guinea, where it is currently completing a bankable feasibility study to develop gold resources currently estimated at over 5 million gold equivalent ounces.
Contact: Alan Scott, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, Aurora Gold Ltd, 2nd Floor, 24 Outram Street, West Perth WA 6005 Australia, Tel: (61 8) 9424 3500, Facsimile (61 8) 9424 3565. (*)