G-Resources Group (HKG:1051) has issued an announcement to update the market with progress made at G-Resources Martabe gold and silver project in Indonesia since October 2011. On the schedule, capital cost and debt facility, the company says that the project schedule is currently under pressure due to late delivery of some components and slower than anticipated steel erection. Every effort is being made to deliver gold as close to the target as possible. The capital cost estimate remains unchanged. The company has signed a US$100M standby loan agreement with a syndicate of international banks.

On operations readiness, the company says that initial gold ore has been mined and stockpiled in readiness for the start up of operations. Early grade control drilling has confirmed the anticipated gold grades from the relevant parts of the resource model. The process and maintenance leadership teams are now established and preparing for commissioning activities.

The total estimated capital cost estimate for the project and working capital remains at US$576 million. To date, commitments of US$544 million have been made and expenditure of approximately US$464 million incurred. The balance of US$112 million will be spent in the coming months.

At the end of December 2011, the company had US$154 million cash on hand which will be used to fund the remainder of the project cost and service working capital, exploration and overhead costs up to first gold production.