Straits reports substantial resource and reserve upgrades in 2011

Australia-listed mining firm Straits Resources Limited has reported substantial resource and reserve upgrade at its Mount Mure gold mine project in Central Kalimantan.

The company said initial Serujan open pit cut back has been completed. The company estimates the project to have capacity to produce 1.6 MTPA of ore.

The company reports the Mt Muro mining site to have resources of 17.9Mt @ 2.Ig/tAu & 46g/tAg (2 mill ozAueq) and reserves of 438,000 Oz Au & 8 million Oz Ag.

The company initially concentrates on Serujan and Bantian open pits.

The production is targeted at 100,000 ozAuEq, with ramp up starting fourth quarter of 2011. The average total cost estimate for FY2012/14 is not exceeding US$850 per oz AuEq.

The company said it was compelling exploration as the majority of the mined systems have only been exploited to a vertical depth of 100 meters with the deepest pits only 150 meters. Typically epithermal gold windows are known to extend over 300-400m vertical extent.

Straits controls 100 percent of Mt. Muro mine through its Indonesian subsidiary PT Indomuro Kencana. (lucky)