Aurora expects more gold

Aurora expects more gold

PERTH (Reuters): Aurora Gold Ltd said yesterday it expects
this year's gold production from its Mt. Muro lode in Indonesia
to show little change from last year's 250,000 ounces.

"We're budgeting for a bit better than a quarter million
equivalent ounces, which will be about 180,000 ounces of gold and
four million ounces of silver," managing director Ian Burston
told Reuters.

"That about the same as last year and we're at that plateau
now," Burston said.

The Mt. Muro mine was weathering the global downturn in the
gold industry better than its Australian neighbors due to the
weakness of the Indonesian rupiah, currently valued at about
14,500 to one U.S. dollar, he said.

Average cash operating costs at the mine were running at
around US$160-$170 an ounce versus a global gold price of around
$292 an ounce.

Aurora earned A$23.29 million net profit in 1997, up from
A$18.39 million the previous year.

Burston said the company was awaiting approval from the
government for its Toka Tindung gold prospect in Sulawesi
province before deciding whether to proceed with mining.