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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. -- Ignore unavailable to you. Want to Upgrade?

To: alan holman who wrote (28091)	1/17/1999 10:58:00 AM
From: alan holman	Read Replies (1) \| Respond to of 28369

Mt. Muro, Indonesia The Mt. Muro mine located on the island of Kalimantan in Indonesia and operated by Aurora Gold Ltd. had a record year with production of 241,000 ounces of gold equivalent, some 11,000 ounces more than last year's 230,000 ounces. It also finished the year on a high note as its fourth quarter operating cash costs were reduced to US$120 per ounce. These records were set in spite of the worst drought experience in central Kalimantan in many years, which made transportation by boat almost impossible on the main rivers leading to the mine site. The heavy forest fire, occasioned by the drought, also produced a severe smoke hazard, and mining operations had to be temporarily suspended until visibility returned to levels allowing safe operations to resume. In fact, for most of the December quarter, the plant operated at less than 80% capacity and the ball mill was taken off line for most of that period due to insufficient power generation capacity. At the Kerikil deposit, mapping, drilling and 3-D computer modelling have continued throughout the year. The geological modelling has confirmed that the higher grade zones coincide with the intersection of structures and provide a framework for delineating further drilling targets. Both infill and step-out drilling were undertaken. Results have been moderately encouraging and further drilling is planned. The Serujan lode system under the Serujan central pit has been tested with an 11-hole program. Results indicate a continuation of the system under the current pit. Exploration on the leases continues with new targets identified in the 20 square km. Kerikil area, Dos Kretek and Mahanyan areas and at the Diwung-Merindu prospect. At year end, the operator had increased Mt. Muro's total gold resources 3% to 1.874 million ounces equivalent even though it used a US$300 per ounce gold price vis-à-vis last year's US$350 per ounce. This is an indication of how robust the reserves grade and ounces are at Mt. Muro.