NUSANTARA Resources expects the first stage of a definitive feasibility study (DFS) into the proposed development of its Awak Mas Gold Project to be completed by the end of the year. The second stage is targeted for delivery in the second quarter of 2018.
|The geology team at Nusantara Resources’ Awak Mas Gold Project in South Sulawesi discusses the resource drilling program.|
The DFS will advance the high-quality study work previously completed by One Asia Resources into the project, which contains an estimated gold mineral resource of 1.74 million ounces.
The first stage of the DFS will focus on mine plan optimisation using the new resource estimate and revised mining costs, and process flowsheet enhancements incorporating the benefits of low cost grid power. The second stage will include updated resource and reserve estimates, formal DFS documentation and the DFS financial model.
Nusantara has appointed a prominent group of experienced mining industry consultants for the DFS, including relevant Indonesian expertise - Cube Consulting (geology); AMC Consultants (mining, geotechnical and hydrogeology); Minnovo (metallurgy and processing); PT Geotechnical and Environmental Services Indonesia (Golder Associates) (hydrology, water and tailings management); PT Lorax Indonesia (environment studies); and PT Resindo Resources & Energy (infrastructure and lead consultant).
Key milestones leading to completion of the DFS and an investment decision are a resource update in Q1 2018 and a reserve estimate in Q2.
In order to upgrade inferred resources to the indicated and measured categories, and with the intention of sourcing further resources, Nusantara is undertaking a diamond drilling program. Phase one will comprise 67 diamond drill holes for approximately 8230 metres at Awak Mas, Salu Bulo and Tarra deposits. Phase two will test for potential resource extensions.
Nusantara’s development strategy is for construction of a large-scale, low strip ratio open pit operation with ore to be processed by conventional flotation and cyanide leaching. Environmental approval has been received for the project, which is favourably located in non-forestry land close to established roads, ports and grid power, enabling the project to quickly advance towards development upon completion of the DFS.
Nusantara aims to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years.