BASED on the positive results of an updated scoping study, which confirmed the potential for development of Randu Kuning deposit at the Wonogiri Gold-Copper Project in Central Java, Augur Resources is completing an Indonesian feasibility study. Submitting the study to the Central Government will support a change of the Wonogiri IUP from exploration to production.

This work involves a geotechnical drilling program which commenced during the September quarter.

The scoping study involved updating the original study in 2014 and the Randu Kuning resource estimate to comply with JORC 2012 guidelines. It also evaluated the production of concentrate via a gravity plus flotation process.

The updated resource at a 0.2 g/t gold equivalent cut-off is 81.56 million tonnes @ 0.38 g/t gold and 0.11% copper. This represents 1.15 million gold equivalent ounces consisting of 996,500 ounces of gold and 190 million pounds of copper. The deposit remains open at depth.

Augur has undertaken metallurgical test work to evaluate the potential to increase the contained copper grade in a sulphide concentrate through pyrite suppression during flotation processing. Optimising recovery of gold and silver through initial gravity concentration and intensive leaching is also being investigated.

The completed test work has confirmed that Randu Kuning tailings material will be non‐acid forming and will be a net acid consumer. As such there will be no acid mine drainage concern for the process tailings.

Once a baseline flowsheet is established, locked cycle tests will commence to indicate what recoveries and concentrate grades might be expected under actual operating conditions.

Augur is assessing the availability and suitability of second‐hand processing plants for Wonogiri. Under the current Indonesian Mining Law, the export of less than 99.99% copper is not permitted unless direct approval from the government is obtained and export tariffs paid. As such, the company is in discussions with several groups in regards to offtake of Wonogiri concentrate.

Augur has also been evaluating the development of a standalone quarry adjacent to the proposed Randu Kuning open pit. During the December quarter baseline environmental studies began with a view to changing the status of the aggregate IUP from exploration to production. The aim is to generate early cash flow from a low capex and opex aggregate operation which can be used to fund development of the Randu Kuning deposit.

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