Production Milestone Reached at Toka Tindung (5737R)
07 November 2011 - 6:00PM
UK Regulatory
TIDMAR.
RNS Number : 5737R
Archipelago Resources PLC
07 November 2011
7 November 2011
AIM: AR.
Archipelago Resources plc
("Archipelago" or "the Company")
Archipelago Reaches Production Milestone at Toka Tindung
Archipelago is pleased to announce the start of full production
at its 95% owned Toka Tindung Gold Mine ("Toka") in North Sulawesi
in Indonesia.
The Company is now meeting its processing throughput criteria of
1.5 mtpa and expects that Toka will produce at least 60,000 ounces
of gold during 2011, averaging approximately 150,000 ounces of gold
annually over the life of the mine.
This fulfils an important milestone for Archipelago as the
Company advances to full production status. In addition to the Toka
Tindung Open Pit, Archipelago has also commenced open pit mining at
its Pajajaran and Araren satellite deposits.
Marcus Engelbrecht, MD and CEO commented "meeting our production
objective is a significant achievement for Archipelago and our
ability to generate positive cash flow will provide the platform
for meaningful growth. Additionally, this production milestone
demonstrates the extent of the support by our local communities who
will participate in the economic benefits the mine provides. Our
success locally has also been due to support from the Indonesian
authorities and our major shareholder, Rajawali Corporation."
Production Guidance
Ramp-up to full production and initial mining activities have
provided the Company with greater clarity on the definition and
minable grade of the mineral reserve. Consequently, Archipelago
expects calendar year 2011 production to be in excess of 60,000
ounces of gold equivalent.
Archipelago will continue to review guidance as it completes
current life of mine planning on the back of a successful
exploration campaign.
Pac Lang, Vietnam
In 2006, Archipelago entered into a joint venture with
Vietnamese entities (VIMICO & Bac Kan) to explore for gold
under a permit at Pac Lang, located 160 km north east of Hanoi.
Exploration activities occurred at Pac Lang from 2007, including
mapping and exploration of pre-existing underground tunnels.
Following a comprehensive review, however, the Company has
decided not to proceed with the Pac Lang project, with results to
date not justifying further expenditure.
Archipelago maintains a strong management presence in Vietnam
and the Company continues to review other opportunities in that
country.
Toka Tindung Exploration Update
Archipelago has completed the first stage of an intensive
drilling programme to better define resource mineralisation within
the Toka Tindung mining permit area.
The Company is currently refining its resource model based on
assay results received and will shortly commence activities to
define an economic reserve.
In addition, Archipelago is progressing exploration across the
broader mining region. Initial results indicate further high grade
prospectivity near to the existing processing plant.
Marcus Engelbrecht further commented "having successfully
established our production base, the Company is committed to
pursuing further drilling programmes at Toka Tindung. This will
support organic production growth at Toka through increased
reserves, additional sources of ore and greater production
optionality." A further announcement on exploration results will be
made in the near future.
Further information:
Matthew Salthouse, VP - Investor Relations & Corporate
Affairs, Archipelago Resources Plc.
Tel: + 65 6535 3419
Shaun Whyte, Ambrian Partners Ltd.
Tel: + 44 20 7634 4700
Bobby Morse/James Strong, Buchanan.
Tel: + 44 20 7466 5000
Gerry Beaney/David Hignell, Grant Thornton Corporate Finance
Tel: + 44 20 7383 5100
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 the 95% owner of the
producing Toka Tindung Gold Mine in North Sulawesi, Indonesia). The
Company is also advancing exploration projects in Vietnam and the
Philippines.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLFFLLLILRIIL
Archipelago Resources (LSE:AR.)
Historical Stock Chart
From Jun 2024 to Jul 2024
Archipelago Resources (LSE:AR.)
Historical Stock Chart
From Jul 2023 to Jul 2024