Straits reports C. Kalimantan Q1 gold, silver output

The following is an excerpt from Straits Asia Resources on Central Kalimantan gold project, taken from the quarterly report ended March 31, 2008 released on Tuesday

Mt Muro Gold Mine, Central Kalimantan
Mt Muro produced 11,725 ounces of gold and 35,325 ounces of silver during the March quarter. Tonnes milled and grade was in line with the previous quarter result, at 108,378t and 3.74 g/t Au. Major maintenance scheduled on the mill for Q2 was pulled forward and undertaken during March - this positions the operation well for the March quarter. Gold sold for the quarter (16,235 oz) was up significantly from the previous period, and the second highest sales recorded for any quarter.

Cash costs increased to US$839 per ounce up from US$532 per ounce. Operating costs increased from the previous quarter due to a number of one off expenses related to major maintenance, an increase in the diesel price and an adjustment for deferred mining costs.

Intensive exploration continued at Mt Muro--Indo Muro Kencana (IMK) at a number of prospects within the CoW. Drilling continued to outline extensions to known gold mineralisation in the Tumbang Lahung project area.

High grade gold intersections were returned from drilling at the Langantihan prospect which is located 8 kilometres north east of the treatment plant. Although this prospect has the potential to host a large low grade resource a high grade vein has been identified in the eastern half of the prospect. (end of edited excerpt)

?	Unit	March Qtr 2008	Dec Qtr 2007
Ore Milled	t	108,378	108,625
Gold grade	g/t	3.74	3.74
Silver grade	g/t	17	17
Gold recovery	%	92.4	95.9
Silver recovery	%	58	72.8
Production gold*	oz	11,725	12,803
Production Silver	oz	35,325	46,825
Gold Sold	oz	16,235	12,387
* Production reported is gold poured