The Asia Miner

JUL-SEP 2018

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

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the asia miner • volume 15 • issue 3 17 FEATURE: All that glitters is gold The Asia - Pacific gold development company Nusantara Resources has announced a maiden Ore Reserve of 1.0 million ounces contained gold for its 100 per cent - owned Awak Mas Gold Project located in South Sulawesi, Indonesia. The Ore Reserve supports a long-life, low cost gold operaঞon at a 2.5 Mtpa processing rate, with a low strip raঞo of 3.5 and good access to established power and transport infrastructure. The Awak Mas Gold Project Probable Reserve – at 0.5 g/t Au cut - off using a US$1250/oz gold price – is 23.7 Mt at 1.35 g/t Au for 1,030,000 contained ounces. The Ore Reserve esঞmate is based on the Mineral Resource esঞmate reported for the Awak Mas and Salu Bulo deposits in January 2018 and February 2018 respecঞvely, and work completed in the first stage of the Definiঞve Feasibility Study (DFS). "Our maiden Ore Reserve represents a significant milestone for the Company and now places Nusantara among an elite group of ASX-listed gold development companies", commented Nusantara's Managing Director and CEO, Mike Spreadborough. "This Ore Reserve combined with the exploraঞon potenঞal of the project demonstrates the value of a proposed long-life, low cost, stand-alone gold project at Awak Mas." BACKGROUND The Awak Mas gold deposit, located in Sulawesi was discovered in 1988. Since that ঞme, a number of owners have undertaken drilling and technical studies within the 14,390ha Contact of Work (CoW). This work has led to the definiঞon of Mineral Resources at the Awak Mas, Salu Bulo and Tarra deposits – collecঞvely, the Awak Mas Gold Project – and compleঞon of Pre-feasibility Studies (PFS). The project has been granted all environmental and construcঞon approvals for conঞnued development. In 2017, Nusantara Resources became owners of the Project from One Asia Resources through an ASX IPO. Nusantara has undertaken further resource definiঞon drilling, metallurgical evaluaঞon, and mining studies targeted for the compleঞon of a Definiঞve Feasibility Study (DFS) by July 2018. The Project is 100 per cent-owned through a 7th Generaঞon CoW with the Government of Indonesia (GoI). The CoW was secured prior to the current Mining Law and has recently been amended by mutual agreement to align with the current law. PT Masmindo Dwi Area (Masmindo), a wholly owned subsidiary of Nusantara, has sole rights to explore and exploit any mineral deposits within the project area unঞl 2050. A[er this period, the operaঞons under the CoW may be extended in the form of a special mining business license (IUPK) in accordance with prevailing laws and regulaঞons, which currently allows for an extension of 10 years and a further extension of 10 years. In the 10th year a[er commercial producঞon, Masmindo is required to offer at least 51 per cent of its share capital to willing Indonesian parঞcipants at fair market value according to internaঞonal pracঞce. GEOLOGY AND MINERAL RESOURCES The Awak Mas, Salu Bulo and Tarra mineralised systems comprise a complex sequence of intercalated meta- sediments and intrusive rocks. A high level, low sulphidaঞon hydrothermal system has developed which is overprinted by a strong sub-verঞcal fracture control which has channelled mineralising fluids. The Project is an acঞve growth project where recently completed diamond drilling by Nusantara has defined a 2.0 Moz Mineral Resource. The Awak Mas deposit currently contains an lndicated and Inferred Mineral Resource of 39 Mt at 1.37 g/t Au for 1.72 Moz uঞlising a lower cut-off grade of 0.5 g/t Au. The smaller satellite deposits of Salu Bulo (3.7 Mt at 1.53 g/t Au) and Tarra (2.3 Mt at 1.34 g/t Au) together contain addiঞonal Mineral Resources of 0.28 Moz of gold and are located 2.5 km east and 4.5 km to the north of the Awak Mas deposit respecঞvely. Nusantara delivers maiden 1.0 moz gold ore reserve Awak Mas camp from North view Awak Mas Site Layout showing the locaon of the three deposits: Awak Mas, Salu Bulo and Tarra

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