G-Resources Group’s Indonesian subsidiary PT Agincourt Resources (PTAR) has entered into an agreement with PT Antam to refine gold and silver bullion.
Under the terms of the agreement, PTAR will send the mixed gold and silver bullion produced at its Martabe project for refining at PT Antam’s Logam Mulia refiney in Indonesia
The Martabe project is located on the western side of the Sumatra island and has a resource base of 7.46Moz gold and 72.60Moz silver.
The project is expected to commence production in the first quarter of 2012 at a rate of 250,000oz/year of gold and 2-3Moz/year of silver at a low cash cost of less than $250/oz of gold.
G-Resources is expecting to increase its production to more than 1Moz/year of gold through exploration of the large and highly prospective COW area and through acquisition of other gold assets.