The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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32 | ASIA Miner | Volume 14 • Issue 1 | 2017 Papua New Guinea PREPARATION of a maiden resource estimate for the operating HGZ Gold Project will enable Crater Gold Mining to refine mining methods for maximum gold extraction. The resource paves the way for increased production with minimal additional capital expenditure or development time. The maiden inferred, JORC-compliant resource for HGZ, which is part of the Crater Mountain Gold Project, is 44,500 tonnes @ 11.9 g/t for 17,100 ounces of gold at a cut-off grade of 5 g/t and with potential for substantial increases. As part of the resource definition, mapping showed three distinct ma- jor high grade gold veins, which are closely linked and estimated to carry 11,800 ounces of gold. The company will refine the mining method from a higher cut-off grade of 7.5 g/t, implementing a revised, more focused mining plan, which will allow for more efficient, targeted gold production. The plan will be implemented with the development of the 1930 Level via a new adit, which is being established. Crater Gold's technical director Richard Johnson said, "The maiden resource confirms the potential for profitable gold mining from HGZ. The report also provides more detail of the high grade veins, enabling us to target more selective mining of the veins going forward. "Whilst the initial JORC resource may seem modest, the gold is accessible and all infrastructure is in place, allowing the company to move quickly to mining of the veins as well as other cross cutting structures." The estimate only considers the HGZ as identified to date. Develop- ment of the 1930 Level will pass through approximately 100 metres of previously unexplored ground adjacent to the high-grade zone, an area considered prospective for additional gold-bearing structures. The potential to increase the resource is considered substantial giv- en that drilling has mostly been confined to a maximum depth of 75 metres from surface and given that there is also evidence that gold is encountered at least to 128 metres. Crater Gold plans to commence infill drilling this year from the 1930 level, which is under development. The resource estimate was completed by Ian Taylor, of Mining Asso- ciates. The prospect was visited by Ian Taylor from September 26-30, 2016. During the visit, he viewed drill core, processing and storage facilities, and toured the underground workings, inspecting geology in the backs and walls of underground drives. ERA Resources hopes an agreement with China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd (NFC) will enhance development plans for the Yandera Copper Project. The parties are negotiating final terms of NFC's appointment to the team of project consultants that will assist Era with pre-feasibility and fea- sibility studies. The Heads of Agreement also outlines the opportunity for NFC, a leading international engineering and consultancy firm, to become an equity holder in Yandera, to play a role in construction financ- ing and to provide services to Era regarding the organisation and arrangement of the funding of certain regional infrastructure devel- opment costs. Era's president and CEO Peter Britz said, "We are very excited for NFC to join our team of world-class partners and consultants at the Yandera project." Meantime, Era's 2016 drilling program has resulted in a substantial increase in measured, indicated and inferred resources over the 2015 estimate. Peter Britz says the 2016 resource estimate pro- vides a strong platform for a pre-feasibility study, which is set to commence early in 2017. There are now 728 million tonnes of measured and indicated re- sources grading 0.33% copper, 0.01% molybdenum and 0.10ppm gold for 2.397 million tonnes of copper, 72,000 tonnes of molyb- denum and 1.593 million ounces of gold. Inferred resources total 230 million tonnes grading 0.29% copper and 0.04ppm gold for 671,000 tonnes of copper, 11,000 tonnes of molybdenum and 264,000 ounces of gold. Era says the new estimate was the culmination of the 2016 strate- gy for Yandera, the aim of which was to demonstrate significant fur- ther resource growth that would underpin a feasibility study, improve understanding of the mineral potential at and along strike from the resource, and to maximise project value through rigorous evaluation of development options. Positive results from the 43 diamond drill hole campaign in 2016 significantly strengthened the resource with a substantial increase in size, expansion of the 2015 footprint, linkages between previously separate pits and potential to further optimise pit design and reduce stripping ratios. Pieter Britz said: "The 2016 drill campaign was a remarkable suc- cess, achieving in all respects our overall targets of understanding the areas between the 2015 pit shells, and then stepping out beyond the 2015 perimeters of pits to expand the footprint of the resource." Crater Gold to refine HGZ methods Major copper-gold deposits in Papua New Guinea, including Era Resourc- es' Yandera project. Era and NFC in Yandera agreement

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