Straits reports C. Kalimantan Q2 gold, silver output

The following is an excerpt from Straits Asia Resources on Central Kalimantan gold project, taken from the quarterly report ended June 30, 2008 released on Monday.

Mt Muro, Central Kalimantan
Straits 100%

Mt Muro produced 10,003 ounces of gold and 33,461 ounces of silver during the June quarter. The operation exceeded budget for gold ounces mined for the quarter but failed to capitalise on this outcome due to the inability to effectively crush and grind the mined ore.

This resulted in a significant build of gold inventory (estimated 10koz Au) in scats stockpiled on the ROM pad.

Approval was granted during the quarter to re-commission the SAG Mill. Activities progressed well with the SAG Mill being commissioned in the first week of July. This will allow the operation to deplete the ROM stock inventory as well as ensuring that future scats production is minimised.

Cash costs increased to US$925 per ounce up from US$839 per ounce. The main impact on operating costs was low production and the cost of diesel, which has increased over 50% since December 2007. The coal fired power Station is scheduled to be online in September, which will reduce operating costs going forward.

Exploration activities continue on historical Aurora prospects and at newly identified prospects within the CoW. (end of excerpt)

?	Unit	June Qtr 2008	March Qtr 2008
Ore Milled	t	104,906	108,378
Gold grade	g/t	2.98	3.74
Silver grade	g/t	16	17
Gold recovery	%	93.1%	92.4
Silver recovery	%	64.8%	58
Production gold*	oz	10,003	11,725
Production Silver	oz	33,461	35,325
Gold Sold	oz	9,323	16,235
* Production reported is gold poured