Straits reports decreased gold, silver output from Mt. Muro

Australian mining firm Straits Resources Limited said on Wednesday gold output at its Mt Muro mine decreased to 9,831 ounces, while silver output down to 62,495 ounces of silver during April-June quarter of the year compared to the previous quarter.

Total gold production from Jan to June 2007 was 27,914 equivalent ounces.

Ore milled increased to 95,345 tonnes from 84,960 tonnes, the head grade fell to 3.5 g/t from 5.2g/t. As a result of the lower production, cash costs increased to US$657 per ounce from $409 per ounce, the company said in statement.

Higher grades expected in the third quarter as transition to Tasat pit is completed. With ore now being sourced from Tasat the grade issue will result in improved production rates and cash costs, the company said.

The company has started open cut mining at the new Tasat pit during the quarter and ore production from Tasat has now commenced. Tasat will augment the supply of ore to the mill currently processing high grade ore from the Botol pit and small, near mine elluvials and by the end of the year will be the main source of production.

Meanwhile, exploration activities at Mt Muro have continued with drilling at the Tumbang Lahung area. Discrete dilatational zones at Botol- Tagape, Soan, Sinter and Sinbar have developed along a well defined northwest structurally controlled corridor.

Straits owns 100 percent stake in Mt. Muro. (denny)