Straits reports reduced output in C. Kalimantan gold mine

Australian miner Straits Resources Limited said on Thursday that third quarter output from Mt. Muro gold mine in Central Kalimantan significantly reduced to 9,382 ounces of gold and 68,216 ounces of silver from 17,502 ounces of gold and 139,033 ounces of silver respectively.

?Output in this quarter was adversely impacted by difficult mining conditions in the Botol pit, where numerous minor wall failures necessitated a cut-back before ore mining could safely resume,? the company said in quarterly reports.

Straits said that cash costs were US$781 per ounce gold produced, it?s more than double compared with the cash cost?s previous quarter US$338 per ounce.

The processing plant treating 81,377 tons during the quarter through a single ball mill, increasing compared to 71,000 tons in the previous quarter, Straits added.

Exploration has continued in a number of areas including Serujan East and Central and a new mineralized vein system was discovered as the Sinter Prospect

The Sinter Prospect lies just 250m northwest of the Soan deposit and has intersected similar styles of mineralization at the same depth.

Intercepts have included, 10.1m @ 10.3 g/t Au, 256 g/t Ag, 10.5m @ 7.0 g/t Au, 419 g/t Ag and 6.7m @ 7.6 g/t Au, 252 g/t Ag.

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