Straits to decide on Mt.Muro gold project redevelopment by H1 2004

Australian mining company Straits Resources Limited expects to make decision whether to go on with re-development of Mount Muro gold mine in Central Kalimantan by the end of first half of next year.

The company said its initial target was to produce at least 100,000 ounces of gold per year from Mt. Muro for three years.

In April 2003, Straits entered into a letter agreement with another Australian company Aurora Gold, which latter merged with Abelle Limited, to acquire a 70 percent interest in a joint venture established to explore, and if successful, to redevelop the area.

Mt. Muro mine had ceased production in June 2002, but still had upside exploration potential. Over its 8-year mine life, the mine had produced approximately 1.7 million gold equivalent ounces. Straits agreed to take over the mine by spending minimum of US$1 million in exploration and to fund recommencement of operations.

According to Straits in a presentation which copy was made available to the Australian Stock exchange Friday, existing assets in Mt. Muro project include US$67 million process plant, which will minimize investment should it decide to proceed with mine redevelopment.

Strait had commenced drilling at several new prospects in Mt. Muro area with encouraging results. (alex)