A geological review at One Asia Resources’ Awak Mas Gold Project in Indonesia has confirmed that the gold mineralisation has an epithermal origin. While this is not expected to change the existing resource, it will guide brownfields expansion potential and adds the potential for new regional targets.
Subsequently, One Asia is planning low-cost target generation work but says brownfields expansion drilling is not needed at this stage.
The geological review program was largely completed at the end of August 2016 following a re-logging program of selected drill holes and receipt of initial reports from the consultants involved.
Initial results of the review:
- The main gold mineralisation is epithermal, associated with late stage stockwork (quartz-albite-ankerite) veinlets.
- Most of the gold has been remobilised and recrystallised on or in fractures in pyrite (ie partially free gold).
- A previously unrecognised hydrothermal Argillic overprint event has enriched gold grades in localised zones to depths beyond 200 metres. Supergene enrichment occurs in oxidised ores near surface and along fractures to depths below 100 metres.
- Stockworks occur within, and adjacent to, a series of steeply dipping sheeted ‘feeder’ bodies recognised by multi-phase alteration and local brecciation.
- Laterally extensive stratabound alteration and mineralisation occurs in some ‘permissive’ lithologies and along bedding planes spreading from the feeder zones.
- Mineralisation is open at depth and, potentially along strike, representing opportunities to extend the current Awak Mas deposits.
- An initial review of the extensive historical metallurgical test work will be undertaken in light of the review findings. If the ‘free gold’ is pervasive there may be possibilities to simplify the process flow sheet to reduce capital and operating costs.
Over the past several months, the Board of One Asia has been exploring and evaluating strategic options for Awak Mas. This includes assessing the most appropriate way to fund and manage a definitive feasibility study (DFS) and the best pathway to project funding if the DFS confirms the results of earlier work.
With gold equity markets relatively buoyant and the economics of Awak Mas improving due to lower costs and higher gold price, it is considered that this is an opportune time to provide value for One Asia shareholders.
A variety of options exist for Awak Mas including vending the project in exchange for shares in a listed entity, taking Awak Mas to a separate IPO, outright sale or taking the project into a DFS within the existing One Asia umbrella. Key issues being considered include the ability to finance and develop the project, management capability, valuation and a timely path to liquidity.
The One Asia Board will only consider a specific transaction if it determines that a transaction meets the critical objectives mentioned above and is in the best interests of One Asia.
Meantime, with the Pani Gold Project the KUD Management Case appeal decision has been received upholding the District Court ruling. While One Asia believes this decision is generally in favour of the management team supporting One Asia providing a path to resolve the management dispute, one of the alternate management team has appealed the decision to the Supreme Court.
A geological review is under way and further investigations are ongoing to validate current observations and findings.
One Asia and its Pani joint venture partner Provident Capital Partners are formulating a work plan for the development of a bankable feasibility study for the project.