Straits Resources reports higher gold output from Mt Muro mine
Thursday, August 1 2013 - 01:29 AM WIB
ASX-listed Straits Resources Limited reported that gold equivalent ounce production from its Mt Muro mine in Central Kalimantan for the June quarter was 15,537oz, an increase of 48 percent over the March quarter.
The company said in a statement Wednesday Mt Muro gold and silver production improved on the previous quarter due to a combination of higher grades and increased ore milled. However, performance remained below internal targets due to a number of challenges faced by the operation including the disruption of mining activities by illegal miners; adjusting to a revised pit design and mining sequence to accommodate a lower gold price environment; continued lower grades in the western end of the Serujan pit; and low silver recoveries.
A revised mine plan was implemented in the March quarter and has been performing in line with expectations. Reconciliation of the June quarter mill production against the revised plan shows actual grades are higher, mined tonnage is higher and consequently gold and silver metal produced is higher than anticipated.
A modification of the mining sequence in the west end of the pit has been forced by a slip on the scum wall. Remedial mining of the slip combined with the pit design changes have resulted in delay in the exposure of the main vein structure in the west of Serujan pit.
Silver recoveries in the processing plant were lower than expected. Low recoveries were due to a combination of treating oxide ore from the east end of Serujan pit with fine silver locked in silicates and the high silver grade of the ore overloading the carbon and carbon stripping circuits. This has been addressed and silver recoveries are back within the normal range.
Illegal mining activity increased over the quarter causing a number of disruptions to the operations. Following the deployment of police and army to the site there have been no further instances relating to illegal mining activity.
Editing by Reiner Simanjuntak