Straits Resources’ Mt Muro Gold Project in Central Kalimantan has held production rates steady after its 2011 redevelopment with 7898 ounces of gold and 163,198 ounces of silver produced in the quarter ending December 31, 2011.
The project is 300km west of Balikpapan and Straits has been focusing on the Serujan deposit, which remains a resource with significant upside and exploration potential, as continued excellent drill results led to a very positive outlook. The company says significant drilling resources will remain committed at the site.
Resource extension drilling has shown increases in the potential depth of the Serujan pit and the Mt Muro mine plan has been adjusted to increase the pit size to include this extra material. This has necessitated higher volumes of initial pre-stripping in this financial year which has delayed slightly the ramp-up in production. As a consequence the production target for the 2012 financial year is now 60,000 gold equivalent ounces.
Production is targeted to approach an annual rate of 100,000 gold equivalent ounces in the June quarter of 2012, and in excess of this level for financial year 2013.
At Serujan in 2011 17 diamond drill holes for 3726 metres were completed with a new high grade vein discovered in the west of the existing mineralization. Further drilling this quarter is continuing to explore the western extension to the Serujan Central mineralization.
Exploration at the Bantian project has also increased, with the company viewing this deposit as its next development focus. Other prospects that will form part of the near-term exploration strategy include Permata and Hulubai in which Straits has previously intersected mineralization and resource estimates have been completed and reported.
The company’s Hillgrove antimony operations in New South Wales, Australia, remain suspended as it prepares for the sale of the project to Ancoa and Emu Nickel.