Waseco seeks financing for C. Kalimantan gold project

Canadian junior mineral explorer Waseco Resources Inc. said on Wednesday that it was continuing with its efforts to obtain production financing for its Tewah alluvial project in Kahayan River valley, Central Kalimantan, where a feasibility study indicates a gold resource of 750,000 ounces and production costs of U.S.$93 per ounce gold equivalent, with zircon as a by-product.

Waseco was reported to have completed bankable feasibility study for the project, but economic and political crises that hit Indonesia for the last few years had made it difficult for the company to raise fund for the project.

The company said an application had been submitted to Industry Canada for support, which could provide an interest rate buy-down of up to 10 percent of the purchase price of a new domestic vessel.

According to Petromindo.com date, Waseco had 60 percent interest in the project, while local firm PT Mercu Buana Raya holds the remaining 40 percent. (alex/robert)