Toka Tindung Gold Mine - First Gold Pour (1311E)
April 01 2011 - 6:37AM
UK Regulatory
TIDMAR.
RNS Number : 1311E
Archipelago Resources PLC
01 April 2011
1(st) April 2011 AIM: AR.
Archipelago Resources Plc
("Archipelago" or "the Company")
Toka Tindung Gold Mine - First Gold Pour
Archipelago is pleased to announce that it has poured first gold
at it's 95% owned Toka Tindung Gold Project in North Sulawasi,
Indonesia ("the Project").
This milestone marks the commencement of production at the
Project. It was achieved one day after the target date of the end
of March 2011 and within the project finance budget.
While some construction activities not essential to the first
gold pour remain to be completed at or peripheral to the processing
site, all of the major items of ore processing equipment have been
successfully commissioned including the oversized crusher and mills
acquired from the El Tambo gold mine in Chile. The plant is
operating in line with expectations for start-up and throughput
will be steadily increased in accordance with the Company's ramp up
schedule.
The mining operation is well advanced despite substantial recent
rainfall and the Company currently has approximately 85,000 tonnes
of 'run of mine' ("ROM") ore, currently representing approximately
3 weeks production, stockpiled on the crusher ROM pad.
Dore ingots comprising approximately 70% gold and 30% silver
will be produced in the gold room at site and shipped to the LME
certified Logam Mulia refinery in Jakarta, where refined gold of
99.99% purity and silver of 99.9% purity is produced.
The Toka Tindung Gold Project has a resource of 1.7 million
ounces of which 1.1m will be minable by way of open pit mining. It
is targeting production of 110,000 ozs of gold equivalent in
calendar year 2011, with an annual average production of 160,000
ozs of gold equivalent over the first 6 years of the initial 8 year
project life.
As previously reported, the Company will spend US$30m of project
generated cash on an exploration program to be undertaken over the
next two years. The number of drill rigs will double from 2 to 4 in
the second quarter and the first batch of assay results are
expected to be available and approved for release in early Q2
2011.
Mr Loosemore, Managing Director and CEO of Archipelago,
commented:-
"The first gold pour marks the final step in Archipelago's
transformation from an exploration and development company into a
production company. We are very pleased to have reached this
milestone close to target which is testament to the extraordinary
hard work of our employees and contractors at Toka Tindung in
challenging climatic conditions. We will continue to work
diligently to ensure a successful ramp up to full production, as
well as expand our asset base through a major exploration
campaign."
Further Info: Colin Loosemore, Managing Director, Archipelago
Resources Plc.
Tel: 61 8 9364 8301
Shaun Whyte, Ambrian Partners Ltd
Tel: 44 20 7634 4700
James Strong / Charles O'Brien / Jonathan Rivlin, Buchanan
Communications
Tel: 44 20 7466 5000
Gerry Beaney / Fiona Kindness / David Hignell, Grant Thornton
Corporate Finance
Tel: 44 20 7383 5100
www.archipelagoresources.co.uk
Archipelago is a mining company listed on the AIM market of the
London Stock Exchange. The Company's principal activities are gold
mining and exploration in Indonesia (as 95% owner of the producing
Toka Tindung Gold Project in North Sulawesi, Indonesia), Vietnam
(as majority party in the Pac Lang and Cam Thuy/Ba Thuoc joint
ventures with VINACOMIN a Vietnamese Government mining company) and
the Philippines (via entitlement to not less than an 80% interest
in exploration company Corplex).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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