Wednesday, July 29, 2009

Straits reported lower gold output in Mt Muro

Straits Resources Ltd (SRL) reported gold production in Mt Muro, Indonesia of 8597 ounces in second quarter 2009, declined 15% from the first quarter.
SRL, controls 100% participating interest in the Mt Muro concession, told ASX this morning that as a result of the reduced production performance brought about by a range of operating bottlenecks, cash costs increased for the quarter to US$1106 per ounce. 
SIlver production, on the other hand, increased slightly to 55,776 ounces from 54,185 ounces in the first quarter. Extensive planning and re-evaluation has recently been completed and commitment has been made to a production plant at the Mt Muro operation based around the development of the Serujan open pit, the Brinjin, and Merindu elluvial mines and the Soan deposit which is forecast to deliver 320,000 recovered gold equivalent ounces over a minimum five years time.
Integral to the plan is the decision to recapitalize the mining and transport fleet and moving to an owner operate strategy during the second half of 2009. Under this plan, SRL expected that in excess of 68,000 gold equivalent ounces will be produced in FY 2009/10 at an average cash operating cost of US$620 per ounces and reducing thereafter, SRL said.

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