Perth-based Western Mining will acquire an 80% stake in Indonesian company PT Persada Bumi Rawas, which holds the gold exploration licence for the Persada tenement in Central Sulawesi. The licence, which was issued by the Regent of Buol and is subject to due diligence, takes in 5000 hectares in an area considered prospective for gold.
Western Mining’s executive chairman Christopher J Clower says, “This acquisition is a progression of the company’s strategy to acquire a diverse range of highly prospective and scalable exploration targets in under-explored regions in Indonesia, through new applications and low-risk acquisition deal structuring.”
The Persada tenement is northeast of Palu in Central Sulawesi, between Toli-Toli and Buol. There is an existing access road to the tenement which is primarily covered by secondary forest and some clove and cocoa plantations.
The Buol region recently gained international attention through the Bulagidun copper-gold prospect in a remote area of north Sulawesi. Soil geochemistry and drilling outlined areas of disseminated and controlled copper-gold mineralization in the area, with three separate bodies at the Bulagidun prospect containing an exploration target of between 13.5 million tonnes to 14.4 million tonnes at a grade range from 0.6 to 0.68ppm gold and from 0.55% to 0.61% copper. This target is based on results from previous soil and stream sampling anomalous results.
Two discrete anomalous areas are identified by the gold-in-stream sediment anomalies. These prospect areas, identified as Block A and Block B, are priority prospect areas for gold mineralization associated with either igneous rocks or sedimentary units located in the southern part of the tenement.
Each of these anomalous areas requires further and more detailed sampling along the anomalous drainages to delimit the bedrock source of the gold. Several isolated and significantly smaller anomalies were also identified, but they appear to be smaller targets and therefore represent lower priority anomalies at this time.
As part of its due diligence, Western Mining plans to collect a total of at least 200 stream sediment samples in the area.
Under the details of the acquisition, Western Mining has exclusive rights to explore and conduct due diligence at the site for 30 days. Once a decision has been made to pursue the acquisition, the company will pay US$500,000 in three stages to secure the 80% stake.