Straits reports Q4 gold output from Mt Muro mine

Australian miner Straits Resources Limited reported Friday its Mount Muro gold mine in Central Kalimantan had achieved output of 7,158 gold equivalent ounces in the fourth quarter last year, up from 6,203 gold equivalent ounces produced on the previous quarter.

Straits also reported that total gold production for the year since restart of operations was 13,361 gold equivalent ounces.

Straits recommenced gold production after being stopped for several years in June 2005. Mining took place from near-mine deposits and low grade stockpiles with production commencing from the Botol vein at the end of December 2005.

Straits said gold production is expected to increase significantly in 2006 as the Botol vein is extracted.

Straits earlier said forecast gold production is 100,000 ounces in 2006.

Straits operates the 47,940 hectares Mt Muro Gold Project under a 3rd Generation Contract of Work (CoW) agreement with the government of the Republic of Indonesia signed in 1985.

According to Straits, the current resource at Mt Muro reached 800,000 ounces gold equivalent. (Robert)