Straits expects to resume Mt Muro gold production mid year

Australian miner Straits Resources Limited reported Wednesday the refurbishment of the processing plant at Mount Muro gold project in Central Kalimantan was 70 percent complete and it expected to resume production by mid 2005.

?In the initial months, mining will commence on the near mine resources and tailings with production from the higher grade Botol area commencing prior to year end,? Straits said, adding that resource calculations and detailed mine planning have been completed on these areas in preparation for development.

Straits also said major contract supply negotiations continue and the procurement of consumables for the restart of operations has commenced. Key management personnel have been successfully recruited and an experienced gold plant commissioning team has been put in place.

The company added that it expected to complete the purchase of Harmony?s Aurora Gold Limited?s 30 percent interest in the Mt Muro gold project in late April.

The purchase will move Straits to full ownership in PT Indo Muro Kencana, the company that runs the project. (Robert)