Dec 21 2007
Following review of the recently completed Definitive Feasibility Study (DFS), Oxiana’s Board has approved development of the Martabe gold and silver project in the Indonesian Province of North Sumatra.
The Board approval is subject to the receipt of final permits from the Government of Indonesia, which are expected by April 2008. In the meantime, this approval allows the project to proceed on a fast-track time line providing for commissioning of the project in December 2009. The capital cost of the project is estimated at US$310 million (including contingency and escalation allowances of US$48m). Average annual total cash costs of production are estimated at US$270/oz.
The Martabe DFS was based on the single Purnama deposit which has an initially identified mine life of 9 years with annual production of 200,000oz of gold and 2,000,000oz of silver. Two other adjacent deposits, Baskari and Pelangi, plus primary gold potential at depth and other un-explored areas of Oxiana’s tenement represent significant upside potential.
Martabe not only adds to Oxiana’s production pipeline but establishes a significant presence for Oxiana in Indonesia, one of the world’s most mineralised and highly prospective domains.