Straits expects 1st gold production from Botol area in Q4

Australian mining firm Straits Resources Limited said on Monday that its first gold production from Botol area of the Mt Muro Gold Project in Central Kalimantan was expected to come in the fourth quarter of 2005.

?Development of a road to Botol has commenced and is expected to reach Botol during the September quarter,? Straits said.

Straits recommenced gold production at Mt Muro in late June. In the initial months, mining will take place at the near mine resources and stockpiles until access is gained to the high grade Botol resource.

?Forecast gold production in 2006 once Botol reached full production is expected to be approximately 100,000 ounces per annum,? Straits said.

Straits also reported total resources at Mt Muro had increased to 800,000 ounces of gold equivalent ounces from 600,000 ounces of gold equivalent at 31 December 2004.

Straits said exploration during the June quarter had focused on the area around Tumbang Lahung and Serujan East to define additional resources.

During the quarter Straits completed the purchase of Harmony?s Aurora Gold Limited?s 30 percent interest in the Mt Muro gold project. The purchase moved Straits to 100 percent ownership. (Robert)