Straits reports C. Kalimantan gold output, exploration
Monday, January 25 2010 - 01:27 AM WIB
Mt Muro, Central Kalimantan
Straits ? 100%
The Mt Muro operation produced 9,840 ounces of gold and 33,167 ounces of silver, during the December 2009 Quarter (8,760 oz Au & 65,425 oz Ag in the September 2009 quarter). The operational performance was again hampered by operating bottlenecks and a lack of available ore for mining. New equipment mobilised towards the end of the quarter has already showed improved production results in December with 4,883 ounces of gold produced. Cash costs increased slightly to US$1,243 per ounce for the December quarter (US$1,226 per ounce previous quarter).
As discussed previously, 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. Work will commence on the new Soan decline in the first quarter of 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. Production in the March quarter 2010 is forecast to be approximately 15,000 ounces gold at cash costs of approximately US$900 per ounce.
QUARTERLY PRODUCTION STATISTICS |
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| Units | Dec 09 Qtr (Q2 FY 2010) |
Sept. 09 Qtr (Q1 FY 2010) | FY 2010 YTD |
FY 2009 | |
| Ore Milled | tonnes | 141,591 | 185,529 | 327,120 | 652,050 |
| Gold grade | g/t | 2.5 | 1.7 | 2.0 | 2.6 |
| Silver grade | g/t | 11.7 | 16 | 14 | 25 |
| Gold recovery | % | 0.9 | 87.6% | 89.1% | 88.70% |
| Silver recovery | % | 59.8 | 66.4% | 63.6% | 60.20% |
| Production (Gold)* | oz Au | 9,840 | 8,760 | 18,600 | 48,846 |
| Silver | oz Ag | 33,167 | 65,425 | 98,592 | 304,357 |
| Gold Sold | oz Au | 8,519 | 8,841 | 17,360 | 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). The IMK CoW continues to offer excellent exposure to a range of geological setting with excellent potential for several styles of mineralization including: Low sulphidation Au-Ag epithermal systems, cureently being exploited and explored for, Mesel style "Carlin" systems (ie.2.1 Moz Au), Porphyry Cu-Au-Mo-Ag systems and High sulphidation Au-Cu-Ag style mineralisation.(end of excerpt)