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, 2009 released on Wednesday.

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

The Mt Muro operation produced 10,180 ounces of gold and 54,185 ounces of silver. The plant encountered a number of metallurgical issues during Mach which resulted in decreased gold recovery. The feed rate to the plant was reduced to minimise the impact of these losses. The metallurgical issues had been resolved by the end of the quarter with recoveries back at design.

Further delays in commissioning the Coal Fired Power Station (CFPS) meant that the anticipated cost savings for the quarter were not fully realised.

Unit cash costs reduced for the quarter but remain higher than expected. Primarily the reasons for the higher than expected costs are due to the higher power cost (delay in CFPS) and the recommencement of mining activities at the Tasat pit which required pre-development and re-establishment of support infrastructure. The average unit cash cost for the quarter was US$940 per ounce, down 8% from the previous quarter. Year to date cash cost are US$881 per ounce.

Considerable work was undertaken during the quarter to secure access to a large elluvial deposit. In early April a MOU was signed with the local government to access this ore supply. IMK will commence mining and processing of this ore in Q2 2009. (end of excerpt)

QUARTERLY PRODUCTION STATISTICS
	Units	March Qtr 2009	Dec. Qtr 2008	Year to Dec. 2008
Ore Milled	tonnes	138,185	204,997	590,343
Gold grade	g/t	2.59	2.25	3.02
Silver grade	g/t	17	31	26
Gold recovery	%	95.9%	86.2%	90.3%
Silver recovery	%	64.5%	45.8%	54%
Production (Gold)*	oz	10,180	12,880	51,796
Silver	oz	54,185	95,898	263,182
Gold Sold	tonne	9,612	14,290	55,279
* Production reported is gold poured