Mount Muro - Indonesia
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3% to 7% NSR
45,748 oz (Au) 349,833 oz (Ag) 950 Kt @ 7.4 g/t (Au) 950 Kt @ 61 g/t (Ag) M: 4.3 Mt @ 0.2 g/t¹; I: 9.6 Mt @ 1.5 g/t / 140 Kt @ 5.9 g/t Inf. (Au) M: 4.3 Mt @ 27 g/t¹; I: 9.6 Mt @ 31 g/t / 140 Kt @ 55 g/t Inf. (Ag) Straits Resources Limited |
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Straits Resources operates the Mt Muro Gold Project under a 3rd Generation Contract of Work ("CoW") agreement with the government of the Republic of Indonesia. This CoW covers 47,940 hectares and was entered into in 1985.
Mining activity is carried out by contractors with ore being supplied from a number of pits within the reasonable haulage distance of the processing plant. The ore is a mixture of hard rock and alluvial material, the result of the multi-pit nature of the operation with the pits all at different levels with respect to the degree of oxidation.
Franco-Nevada has a sliding scale NSR royalty effective on 90% of production and capped at cumulative production of 1,500,000 oz for the property. As at June, 2007, approximately 1.35 million oz had been produced from the project.
Straits Resources estimated in a presentation dated February 29, 2008 production from Mt. Muro of 70 koz Au equivalent in 2008. Their 3–5 year target is plus 100 koz Au equivalent production per annum and a 5- to 10-year mine life.
¹ Measured and indicated resources are inclusive of reserves.