Straits gold output from Kalimantan mine up 33 percent

Australian miner Straits Resources Limited said on Thursday that the gold output of its Mt. Muro mine in Central Kalimantan rose 33 percent to 13,838 ounces in the first quarter of the year, while its silver output is higher by 66 percent to 171,050 ounces compared the previous quarter.

 

The firm has targeted to produce approximately 80,000 ounces of gold equivalent this year.

 

Straits said in a statement to the Australian Stock Exchange that cash costs were US$409 per ounce of gold produced, lower than  the cash costs of the  previous quarter which stood at $890 per ounce.

 

The processing plant treat 84,960 tons of ore during the quarter through a single ball mill, up from 59,521 tons in the previous quarter, Straits said.

 

Exploration is continuing in a number of areas. Drilling at the new Tasat pit has been almost completed and ore production is expected to commence in the current quarter. Ore at the pit have grades of between 5 and 6 gpt (gram per ton), consistent with the existing average mill feed grades. The pit will become the mainstay of production from the end of 2007 onwards.

 

Straits owns 100 percent stake in Mt. Muro. (denny)