Peninsular Gold Limited – Plant upgrade at Raub, Malaysia

 

• Planned plant upgrade to raise throughput at Raub to two million tonnes per annum

• Debt financing for plant upgrade secured

Raub Australian Gold Mining a wholly owned subsidiary of the Company, today announces its intended strategy to upgrade the Raub processing facility to a two million tonnes per annum plant following encouraging progress of its operations at Raub since first gold production in February this year. RAGM has obtained necessary funding for the upgrade and associated mine infrastructure costs.

The planned upgrade is expected to bring the Plant’s throughput up to two mtpa, with anticipated completion set for the end of Q4 2010 and falls within its existing environmental approval from the Department of Environment.  The increase in throughput will also enable the business to reap greater benefits from its five year Malaysian Pioneer Status tax incentive for the Raub project.  There is not expected to be any impact on production levels due to the upgrade work.  The project will be managed by the Time Mining Group of South Africa.

The agreed Islamic financing facility is for up to Ringgit Malaysia 100million (approximately US$28million) with a local Malaysian financial institution. Apart from the upgrade to the processing plant, the scope of the work will include an additional tailings circuit, ancillary services, environmental protection measures and other mine infrastructure.