A new agreement between Prosperity Resources and local company Atjeh Investments could see development of open pit operations at its Aceh gold-copper project fast tracked. Atjeh has signed on to develop the project, prompting Prosperity to start work on beneficiation and exports at the site as well as listing on a regional stock exchange.
The 41,000 hectare project is in southern Aceh where eight known porphyry intrusive and related skarn targets along a 60km strike have been confirmed. Prosperity has recently started drilling at the Kuini copper-gold prospect after being delayed for almost two years resolving community access issues.
Prosperity chairman Mo Munshi says securing the agreement with a strong local partner has been essential to advancement of project, and could mark the beginning of a relationship between the two companies that may capitalize on the potential mineral resources acquisition and development opportunities in Aceh province.
“The agreement will see locals dealing with locals, allowing for faster approvals and better progress for the project. Upon the successful listing of an open pit mining company, Prosperity will issue a total of 30 million shares to Atjeh in a number of stages, based on various milestones,” Mo Munshi says.
Prosperity is targeting open pit mining at the site in order to access the shallow oxide cap to generate initial cash flow. Once these caps have been mined, the company says it will use the capital to delineate a number of copper gold porphyry systems below. The agreement with Atjeh only covers up to 50 metres depth.