Xin Fa will soon begin gold production

PT Xin Fa Minerals will begin gold production activities at the company?s gold mine in Cianjur, West Java in the middle of this year following the completion of the exploration works in several parts of the mine concession area, Kontan reported on Thursday.

Ladjiman Damanik, President Director of Xin Fa said in Jakarta on Wednesday that the mining company had drilled four wells since it began exploration in 2010. ?Initial estimate of the gold reserves in the four areas is about five tons, with total gold resource of about 30 tons,? he said.

Although drilling works have been completed, Xin Fa will be unable to soon begin production because it still needs large amount of funds to finance further development. Ladjiman said that the company would need at least US$19 million to carry out production, of which about $6 million will be used for the construction of processing facilities and the other $13 million for operating costs.

?The production cost of our gold is expected to reach $500 per troy ounce,? he said.(*)