|A forest classification map for the Gorontalo region with the MMG properties outlined in red.|
AUGUR Resources has entered into an agreement to acquire an 80% interest in four prospective copper and gold tenements in North Sulawesi from MMG Exploration through acquisition of shares in two MMG Singapore subsidiaries which own the PMA companies that hold the mineral tenements. MMG has decided to withdraw from Indonesia due to a change in global exploration strategy.
The four projects - Toluludu, Biyonga, Tapadaa and Tahele - are collectively referred to as the Gorontalo Properties and are in northern Sulawesi, near the city of Gorontalo. Each of the project areas contains zones of alteration and mineralization indicative of copper-gold porphyry and/or related epithermal-type gold and silver and skarn-type mineralization.
Under the terms of the agreement Augur must pay Aus$50,000 within five days of signing of the agreement and a further Aus$150,000 on completion of all corporate requirements to affect the transfer of shares in the two Singaporean MMG subsidiaries to a subsidiary company of Augur.
Upon completion of a bankable feasibility study on any of the tenements MMG must elect to either contribute towards expenditure of the subsidiary company holding title to the relevant tenement in proportion to its remaining 20% interest or convert the remaining interest to a 2% net smelter royalty based on all production from the tenements.
MMG staked the properties in 2009 and the exploration licences or IUPs are currently in the exploration phase which expires in 2016, after which the licences can be converted to exploitation stage. The properties were staked based on historical exploration results, however due to a lengthy forest access permitting process MMG was only able to drill the Tapadaa property. The other three tenements received only cursory surface exploration to confirm the historical results.
Further basic exploration including surface mapping, soil/rock sampling, trenching, and ground geophysics is required in order to define targets for drill testing. Augur expects this to commence during the December 2014 quarter.
Meantime, assay results from the first two holes completed in the current drill program at Augur’s Wonogiri Gold-Copper Project in Central Java have extended a high grade gold zone intersected by previous drilling in 2012. Both holes were designed to test for extensions of higher grade gold zones previously intersected within the Randu Kuning resource area by two previous holes which returned 25 metres @ 1.03 grams/tonne gold and 0.23% copper, and 104.1 metres @ 1.08 grams/tonne gold and 0.25% copper respectively.
The new holes returned 60.9 metres from 210.1 metres @ 0.57 grams/tonne gold and 0.16 % copper, including 18.9 metres from 210.1 metres @ 1.01 grams/tonne gold and 0.16% copper; and 4.3 metres from 368.7 metres @ 0.99 grams/tonne gold and 0.06% copper, including 1 metre @ 2.78 grams/tonne gold and 0.2% copper.