Nusantara Resources has started diamond drilling focusing on the mine corridor at the Awak Mas Gold Project in Sulawesi, Indonesia. The phase one exploration program is designed to test for extensions to the defined mineralisation at the Awak Mas and Salu Bulo deposits and explore for structural repetitions along the intervening corridor.

A recent review has highlighted three high priority resource extension targets:

• To the immediate east of the highwall fault at the eastern extremities of the Awak Mas deposit;
• Along strike to the north and to the west of Salu Bulo on the Bandoli and Lelating structures; and,
• Possible repetitions in the approximately 1km corridor between Awak Mas and Salu Bulo.

Nusantara’s increased confidence in its understanding of the Awak Mas deposit geological model has enabled the application of current concepts at a larger scale. When considering structural repetitions seen at an individual domain scale, several clear targets have emerged which are being tested by an initial four-hole diamond drill program. This program is underway with first results expected in early January 2018.

The Awak Mas deposit mineral resource has previously had very limited drilling to the east, with the Rante Domain open in this direction. At Salu Bulo one hole will target a potential intersection zone.

After receiving all results from its resource drilling program, including the diamond holes, Nusantara aims to prepare an updated mineral resource estimate in late January.

Discovered in 1988, the project has had 124km of drilling completed in over 1000 holes. The project is owned through a 7th Generation Contract of Work (CoW) with the Indonesian Government.

Nusantara’s development strategy is for construction of a large-scale, low strip ratio open pit operation with ore to be processed by conventional whole-of-ore cyanide leaching. Environmental approval has already 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 a DFS by mid-2018.

Nusantara’s second strategy is to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years.