Straits reports C. Kalimantan gold output, exploration

The following is an edited excerpt from ASX-listed firm Straits Resources Ltd. on Central Kalimantan gold project, taken from the quarterly report ended March 31, 2010 released on Wednesday.

Mt Muro (MK), Central Kalimantan
Straits ? Contract of Work 100%

The operational performance at Mt Muro improved significantly from the previous quarter with a 44% increase in gold production. Mt Muro produced 14,201 ounces of gold and 23,604 ounces of silver during the March 2010 quarter (9,840 oz Au & 33,167 oz Ag in the December 2009 quarter). New equipment mobilised in the previous quarter enabled an increase in primary ore production which coincided with an increase in mill feed grade. As a consequence of the improved production, cash costs were reduced to US$1057 per ounce of gold from US$1249 per ounce. Cash costs are expected to reduce further in the June quarter as mining volumes increase.

Pre-stripping of the Serujan open pit has commenced as has development of the decline to the Soan ore body. Gold production is expected from both Serujan and Soan by the December quarter 2010.

Production in the current quarter is expected to increase to approximately 16,000 ounces of gold and reduced cash costs are anticipated.

QUARTERLY PRODUCTION STATISTICS
	Units	March Qtr 2010 (Q3 FY 2010)	Dec. Qtr 2009 (Q2 FY 2010)	FY 2010 YTD	FY 2009
Ore Milled	tonnes	131,549	141,591	458,669	652,050
Gold grade	g/t	3.5	2.5	2.5	2.6
Silver grade	g/t	12	11.7	14	25
Gold recovery	%	91.3%	0.9	89.7%	88.7%
Silver recovery	%	63.6%	59.8%	63.6%	60.2%
Production (Gold)*	oz	14,201	9,840	32,801	48,846
Silver	oz	23,604	33,167	122,196	304,357
Gold Sold	oz	13,502	8,519	30,862	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 settings with significant potential for several styles of mineralization including low sulphidation Au-Ag epihermal systems (currently 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.

Review of historical IP data has identified a number of priority targets at the Tasat Mining area. These new targets will be drill tested in the June quarter. Further IP geophysical programmes are planned for the June and September quarters. (end of edited excerpt)