Straits reports Mt Muro gold, silver production

The following is an excerpt from Straits Resources Limited taken from quarterly report ended 31 June 2011 released on Friday.

Mt Muro continued to ramp up its processing operations over the quarter going on to produce 7,272 oz Au and 157,299 oz Ag.

The operation continues to focus on the major development of the Serujan open pit which is progressing on schedule. The ramp up in production continues with forecast production in FY2012 of approximately 70 Koz AuEq.

Mt Muro (Indo Muro Kencana (IMK))
Straits ? 100%

Mt Muro remains a resource with significant upside and exploration potential. The increased resource base and recent drill results continue to underpin the very positive future outlook for Mt Muro. Drilling continues with 5 drill rigs. Planning and pit development continues to support a medium term production rate well in excess of 100 k oz AuEq per annum.

An updated resource estimation for the Serujan and Bantian was completed during the reporting period with an additional 157K AuEq ounces added to the resource inventory (see ASX:SRQ announcement dated 12 July 2011). Exploration continued to produce encouraging ore grade intersections during the quarter from the Serujan and Bantian project areas.

Three diamond rigs continued drilling at Serujan, testing the area between the Serujan Central and Serujan East pits. Drilling has successfully linked the structures between these two pits into one continuous mineralised structural corridor. Drilling continues to intersect mineralisation outside the existing resource models and pit designs.

Serujan Exploration
During the quarter 52 diamond drill holes were drilled for 10,574.40m. Drilling focused on the zone between Serujan Central and Serujan east known as ?the Gap?. Drilling continued to extend the mineralization in the upper levels successfully extended mineralization in the Gap region to 150m below the current surface.

Bantian Exploration
The Bantian trend consists of several structures and pits which have a strike length of approximately 2.5km. These have been divided into 5 X 500m blocks and ranked accordingly.

During the quarter drilling continued on Bantian Block 4, 5 and late in the quarter commenced on Block 3. In addition drilling commenced on Luit Bawah, a parallel structure to Bantian which reports into the Bantian Resource. 110 holes were completed during the quarter totaling 8,581 metres.

Exploration activities planned for the September 2011 quarter at Mt Muro will focus on the following;

? Continue drilling the Serujan structure
? Continue drilling Bantian blocks 2 and 3
? Additional drilling on the Luit Bawah structure
? Commence drilling on the Northern end of the Hulubai structure
? Planning and line cutting for IP surveys
? Commencement of a structural geology study. (end of edited release)

	Units	June 11	Mar 11*	Dec 10 Qtr	Sept 10 Qtr	12 mths to June 2011	FY 2010
Ore Milled	tonnes	124.885	35.520	38.160	126.470	325.035	615.544
Grade
Gold	g/t Au	1.8	2.5	3.7	2.9	2.5	2.6
Silver	g/t Ag	46.6	71.9	5.8	6	28.9	12
Recovery
Gold	% Au	94.7%	96.0%	90.2%	90.3%	92.6%	89.7%
Silver	% Ag	76.4%	81.5%	72.3%	67.1%	72.9%	58.9%
Production
Gold	oz Au	7.272	2.006	5.181	10.563	25.022	45.521
Silver	oz Ag	157.299	46.559	6.754	17.890	228.502	143.496
Gold Sold	oz Au	6.365	1.157	7.555	10.834	25.911	43.754
* Mt Muro result Q3 include March 2011 only as the operation restarted after capital investment ** Production reported is gold poured