Straits reports C. Kalimantan gold output, exploration
Friday, October 23 2009 - 04:11 AM WIB
Mt Muro (IMK), Central Kalimantan
Straits ? 100%
The Mt Muro operation produced 8,760 ounces of gold and 65,425 ounces of silver, during the September 2009 Quarter (8,597 oz Au & 55,776 oz Ag in the June 2009 quarter). The low production performance was brought about by operating bottlenecks and a lack of available ore for mining.
Cash costs increased for the quarter to US$1,226 per ounce.
As discussed in the previous quarterly report a re-evaluation of Mt Muro has resulted in a commitment to a new production plan at Mt Muro based around the development of the Serujan open pit, the Berinjin and Merindu elluvial mines and the Soan deposit. The mine is currently in the process of mobilising new mining equipment in order to move to owner operator management and replace the existing contractor. Work will commence on the new Soan decline in the first quarter 2010.
The new production plan is forecast to deliver 320,000 recovered gold equivalent ounces over a minimum five year time frame at average cash costs of approximately US$600/oz. This plan requires investing US$20 million (including US$16 million mine development costs) in Mt Muro over the 12 month period to June 2010. It is expected that as new mining areas become available by year-end, production will increase.
QUARTERLY PRODUCTION STATISTICS |
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| Units | Sept 09 Qtr |
Sept 08 Qtr |
FY 2009 | |
| Ore Milled | tonnes | 185,529 | 172,062 | 652,050 |
| Gold grade | g/t | 1.7 | 3.5 | 2.62 |
| Silver grade | g/t | 16 | 32 | 24.55 |
| Gold recovery | % | 87.6% | 90.8% | 88.70% |
| Silver recovery | % | 66.4% | 58.80% | 60.20% |
| Production (Gold)* | oz Au | 8,760 | 17,188 | 48,846 |
| Silver | oz Ag | 65,425 | 98,498 | 304,357 |
| Gold Sold | oz Au | 8,841 | 15,431 | 48,367 |
| * Production reported is gold poured | ||||
EXPLORATION
Exploration activities at Mt Muro have continued with the evaluation of historical targets within the Indo Muro Kencana, Contract of Work (IMK CoW). Newly discovered targets at the Lahung and Untu prospects have been drill tested with assay results awaited.
The IMK CoW offers exposure to a geological setting with excellent potential to contain additional high grade low sulphidation epithermal vein systems. Total production from the field is now approaching two million gold equivalent ounces. (end of excerpt)