Straits Resources applies fuel trucking solution

By Cepi Setiadi

ASX listed gold miner Straits Resources Limited stated it has applied a temporary fuel trucking solution at the Mt Muro Gold Mine that has enabled waste stripping to resume as of 29 June 2012. Milan Jerkovic, Chief Executive Officer Straiton s Resources said that there is no significant rain has yet occured to enable fuel supply via the river.

"The amount of waste stripping is at the level that enables ore to continue to be released," he said on a company's announcement today.

Further ramp-up will occur in accordance to fuel stocks, also taking into account the need to limit Mt Muro's costs through this period until production returns to stability.

The company said that the plant has resumed operation, while production target for July and August remains at 5,000 oz AuEq per month.

The Mt Muro Gold mine is located in the northern part of Central Kalimantan owned by Straits wholly owned subsidiary PT Indo Muro Kencana. The mine lies 300 km due

west of Balikpapan and 40? south of the Equator under a third generation Contract of Work (CoW) which covers some 47,940ha of the central Kalimantan magmatic arc which hosts the Kelian, Mt Muro and Mirah gold deposits among others.

Production at Mt Muro is forecast to ramp up strongly in 2012, targeting an output of 100,000oz AuEq in FY 2013 with cash costs of US $900/oz AuEq. The latest reserves have a 6 year mine life at +100,000 oz AuEq from FY2013 and average cash cost of $US 775/oz AuEq, average total costs of $US 915/oz.

Editing by Er Audy Zandri