Nusantara Resources has started a diamond drilling program at the Awak Mas Gold Project in South Sulawesi, Indonesia. The aim of the program is to expand the mineral resource of 1.74 million ounces primarily through upgrading inferred resources to the indicated and measured categories.
Phase one of the two-phase program will comprise 67 diamond drill holes for approximately 8230 metres at the Awak Mas, Salu Bulo and Tarra deposits. Leading Asia Pacific drilling company Indodrill has been contracted for the program.
The first phase is designed to target unclassified gold mineralisation and upgrade inferred mineralisation in areas across the three deposits. A further objective is to define additional gold resources outside current resource pit shells.
Phase two of the program will test for potential resource extensions.
Nusantara’s CEO and managing director Mike Spreadborough said, “We are pleased to have engaged the services of Indodrill to work together in achieving this important first step of expanding the Awak Mas resource and successfully growing the scale of this world-class gold project.”
Nusantara is a recently listed gold mining company spun out of One Asia Resources. Its flagship project is Awak Mas, which was discovered in 1988 and has had some 124km of drilling completed in more than 1000 holes. The project is 100%-owned in a 7th generation Contract of Work (CoW) with the Indonesian Government.
The project is environmentally approved and is favourably located in a non-forestry area. It is close to established roads, grid power and ports. Nusantara aims to complete a Definitive Feasibility Study (DFS) by mid to late 2018.
There are two development strategies - to create a large-scale, low strip ratio open pit operation with ore to be processed by conventional flotation and cyanide leaching; and to the grow resource base and sustain a mining operation beyond the initial targeted life of 10 years.
Multiple drill targets have been outlined extending from the three main deposits and in other areas of the 140sqkm CoW.