The Awak Mas Gold Project in Sulawesi, Indonesia (“the Project”) covers an area of 14,390 hectares and is held under a 100%-owned, 7th Generation Contract of Work (COW) owned by PT Masmindo Dwi Area (a wholly-owned subsidiary of Nusantara) in partnership with the Indonesian Government.
The nearest major town to the Project is the coastal port city of Palopo, which is 67km northeast of the site. Access from Makassar, the capital of Sulawesi, is via a 67km paved road to Belopa, then a further 40km on a gravel road to site. A regional airport, hosting daily flights, is located within a 2.5 hour drive from the Awak Mas camp.
The Project has been the focus of intensive modern day exploration since the discovery of the Awak Mas gold deposit in 1991 by a succession of international exploration and mining companies including Battle Mountain Gold, Lone Star Exploration, Gascoyne Gold Mines, JCI, Masmindo Mining Corporation, Placer Pacific, Vista Gold and most recently by One Asia Resources. To date, over 100,000m of drilling and several development studies have been completed.
Nusantara’s experienced technical team assembled by Managing Director Mike Spreadborough has completed a detailed review of the previous data, testwork and development studies.
Gold mineralisation at the three deposits defined to date (Awak Mas, Salu Bulo and Tarra) is now interpreted to be an ’intrusion related’ hydrothermal model, whereby mineralising fluids have been introduced via structural conduits. The geological interpretation adopted is:
- Episodes of sub-vertical mineralisation feeding into foliation parallel veins with progressive reactivation of sub-vertical structures providing a higher-grade overprint.
- Awak Mas and Salu Bulo mineralisation is characterised by low sulphidation, crackle breccia, vuggy quartz infill and stockwork quartz veining.
This model has been recognised at several other gold systems both within Indonesia and globally.
A 1.74 Moz Indicated and Inferred Resource was estimated by Cube Consultants in May 2017 and independently reviewed by CSA Global.
Awak Mas Mineral Resource Estimate (May 2017) at 0.5 g/t Au cut-off and constrained by
US$1,400/oz pit shell.
MINERAL RESOURCE ESTIMATE - MAY 2017
- All Mineral Resources are reported in accordance with the JORC Code (2012).
- The May 2017 Mineral Resource is reported at a cut-off grade of 0.5 g/t Au and constrained within US$1,400 per ounce optimised pit shells.
- All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
The previous mining, metallurgical and infrastructure work along with advanced-stage permitting, provides an enhanced launching point to rapidly take the project forward, with a Definitive Feasibility Study (DFS) planned for completion by mid-2018, leading to an investment decision for development expected in late 2018.
Nusantara’s review work to date indicates that the defined resources are best suited to exploitation by open cut methods. One operational benefit is the flexibility bestowed by several pits rather than a single pit. The Company’s metallurgical review focussed on the following process options:
- Option 1: Flotation & CIL;
- Option 2A: Whole Ore Leach; and
- Option 2B: Whole Ore Leach with Gravity Sulphide Regrind.
The availability of low cost, stable grid power provides scope to reassess all the various processing options. Additional geological investigative work and metallurgical test work is planned for the DFS.
The project has a well-established camp and access road. Approximately 40km of the road from the regional highway to the mine site will require upgrading. An abundant water supply is available from the local river system.
Permitting is well advanced, with the AMDAL (environmental) permit already received and the COW ready to advance into a three-year construction phase, then a 30-year production period. The COW is situated in land classified as Area Penggunaan Lain (APL) (land for other uses), a non-protected forest area that readily allows for activities beyond agriculture such as mining.
In addition to the near-term development opportunity, there is good scope to grow the resource base through potential extensions to the Awak Mas and satellite Salu Bulo and Tarra deposits. The Project’s location within a significant but underexplored gold field also offers excellent potential for further discoveries.
The gold field remains largely open, hosting numerous satellite targets along regional trends where previous trenching and scout drilling has identified ore grade mineralisation. Recent work has outlined two corridors recognised as containing most of the targets thus far identified. These are the ’Mine Corridor’, lying essentially between Awak Mas and Salu Bulo and the ’East Corridor’ spanning between Salu Bulo and Tarra.
An initial 8,000m drill program is planned for 2017 to increase drill density in extensions to the known resources and a further 2,000m testing regional targets, with an Exploration Target of 0.3 – 0.5Moz identified and an aspirational exploration goal of +3 Moz*.
*Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. While Nusantara is confident that it will report additional resources for the Awak Mas Gold Project, there has been insufficient exploration to define resources in addition to the current Mineral Resource Estimate reported in accordance with the guidelines of the JORC Code (2012 Edition) and it is uncertain if further exploration will result in the determination of additional Mineral Resources