Augur Resources expects to complete a scoping study on the Randu Kuning deposit at its Wonogiri Gold-Copper Project in central Java by the end of this quarter.  1

The Randu Kuning resource comprises 1.54 million gold equivalent ounces and remains open at depth as well as to the east and south. The company has identified a number of additional targets at Wonogiri.

Metallurgical testing of samples from the lower grade portion of the Randu Kuning deposit has started with recoveries of up to 90.1% for gold and 93.78% for copper. The first stage of testing has been to determine the optimum grind size for further testing. Results indicate that the optimum grind size is about 106 micrometres. Finer grinding resulted in no change to the gold recovery while coarser grinding returned significant recoveries with a 212 micrometre sample returning gold recoveries of 85.9% and copper recoveries of 87.2%.

The significance of these results is that they show high recoveries can be achieved from both the higher and lower grade portions of the deposit. They also show that only relatively moderate grinding is required to liberate the gold which should therefore provide power cost savings relative to finer grinding.

Augur holds 80% of Wonogiri with PT Oxindo, a subsidiary of MMG Ltd, holding 10% and four individual shareholders the remainder. Between 2009 and 2012, modern exploration techniques have been applied to define a highly altered wall rock porphyry gold-copper deposit at Randu Kuning.

In July 2012, Augur announced the maiden JORC-compliant resource of 90.9 million tonnes @ 0.53 grams/tonne gold equivalent (0.35 grams/tonne gold and 0.10% copper) using a cut-off of 0.2 grams/tonne gold equivalent. The estimate includes oxide, transition and sulphide components of the deposit. The sulphide component accounts for 95.7% of the estimated resource tonnes and this has been the focus of much of the ongoing metallurgical studies.

There is quality infrastructure supporting the project. It is about 30km south of the provincial city of Solo and is easily accessible by daily flights from Jakarta and then a 1 hour drive by car on sealed roads. The surrounding area has grid power, a large dam and numerous river and stream systems.

The surface area above Randu Kuning deposit has no forestry restrictions. It is one of a number of gold and copper prospects at Wonogiri. Follow-up exploration of these prospects continues.

www.augur.com.au

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