Despite its previously announced decision to sell its 85% interest in the Toka Tindung project in Indonesia, Aurora Gold says it will continue to operate the Mt. Muro gold-silver mine, in the same country.
The Australian company has operated the mine, situated in Kalimantan, since 1994.
The decision to sell the stake in Toka Tindung is based on political and social unrest in the region, and on the failure of local authorities to address the growing problem of illegal mining.
In 1999, Aurora took the pre-emptive step of writing off the carrying value of the project. Therefore, the sale of Toka Tindung, which had never progressed to development status, will not have a negative financial impact on Aurora or its shareholders.
Last year, Mt. Muro produced 253,250 oz. gold, contributing to a $5.3-million profit for Aurora. In the most recent quarter, the mine produced 49,291 oz. gold-equivalent and returned encouraging exploration results.
Aurora says several companies have expressed interest in Toka Tindung, and negotiations are under way.
Meanwhile, at its Morobe Project in Papua New Guinea, the company is completing a bankable feasibility study aimed at outlining a resource of more than 5 million oz. gold-equivalent.
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