AR. Archipelago Res

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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