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 Click Here for more Archipelago Resources Charts.
Archipelago Resources (LSE:AR.)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Archipelago Resources Charts.