The Asia Miner

OCT-DEC 2018

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

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Page 34 of 51

the asia miner • volume 15 • issue 4 33 AROUND THE REGION Myanmar Metals has completed a scoping study for the first open pit at its Bawdwin Project in Myanmar, targeঞng the indicated mineral resources of the China Lode. The China Pit Scoping Study was prepared by CSA Global (CSA) with input from Myanmar Metals and industry consultants, and demonstrates a technically and financially viable project based on assumpঞons adopted for the purpose of this study. The China Pit does not include 60.9Mt of declared inferred resources from the China Lode (outside the pit shell) and from the Shan and Meingtha Lodes. Myanmar Metals notes that all three currently defined lodes are open at depth and along strike and are the subject of current and planned drilling programs. Over 100 years of documented mining of the Bawdwin mineralisaঞon provides a good understanding of the geometry and conঞnuity of the mineralised lodes. The company and its partners are now firmly focused on delivering the China Pit as a first stage, allowing early access to the Shan and Meingtha lodes from underground as well as open pit extensions from China Pit. Geotechnical and resource drilling is underway, metallurgical testwork will re-start shortly and an infrastructure and logisঞcs study will commence therea[er. Myanmar Metals Execuঞve Chairman and CEO John Lamb commented that the China Pit was the opening move in bringing the Bawdwin polymetallic province back into producঞon. "We believe the China Pit will be the first of at least three pits on the Bawdwin Concession, followed by a long-life underground mining operaঞon. "Economic esঞmates from the China Pit Scoping Study are underpinned by 21Mt of mineable material, represenঞng only 26 per cent of total project resources." According to the company report, the role of a starter pit is to provide an early cashflow to fund life-of-mine infrastructure and the development of a pipeline of future mines. The PFS will provide esঞmates with a higher level of confidence and allow a JORC-2012 Ore Reserve to be declared at Bawdwin for the first ঞme. China pit scoping study finalised Angkor has entered into an earn- in agreement with Canadian-based private company, Hommy 5 Resources on Angkor's wholly-owned Banlung property in north-eastern Cambodia. The Banlung property – one of Angkor's five licenses in Cambodia – includes two primary prospects: Okalla West and Okalla East, with gold mineralisaঞon associated with an alkaline intrusive complex. Drilling on the property is expected to begin in the coming dry season and will be aimed at prospecঞve structurally-hosted gold anomalies. "As the region's most successful project generator, Angkor has been able to aract such development and funding partners as Japan's JOGMEC and Australia's Emerald Resources. "The principals behind Hommy Resources are already shareholders of Angkor, and their stable funding of conঞnued exploraঞon on our highly prospecঞve Banlung property will allow us to rapidly advance this asset", said Angkor's CEO Stephen Burega. Approximately US$1.2 million in work has been done at Banlung since the beginning of 2017, including shallow drilling to invesঞgate and beer understand the underlying structure. In addiঞon to drilling, the enঞre license area has previously been the subject of an aeromagneঞc survey, satellite imagery geological interpretaঞon, with reconnaissance field truth mapping and mulঞ-element stream sediment geochemical survey, as well as extensive grab sample, termite mound and auger sampling. The Company previously reported a high-grade zone in 2011 which included an intercept of high-grade gold at Okalla East of 86.0 gpt Au over 1m, at 101m to 102m in drill hole BL11-026. The terms of the agreement with Hommy Resources include a total investment by Hommy Resources of US$3.3 million in exploraঞon and development expenditures plus cash payments to Angkor of US$350,000 over a three-year period to acquire a 51 per cent parঞcipaঞng interest in the Banlung license. Upon compleঞon of the iniঞal earn-in opঞon, Hommy Resources has the right to acquire an addiঞonal 29 per cent parঞcipaঞng interest in the license with the commissioning, and compleঞon of a Feasibility Study. A[er that, Angkor will maintain a 20 per cent parঞcipaঞng interest in the property through to producঞon, or at Angkor's discreঞon, can convert to a 3.5 per cent Net Smelter Return ("NSR") on all metals. Angkor will be the operator on the project unঞl Hommy Resources acquires a 51 per cent parঞcipaঞng interest in the Banlung license. Angkor Gold's Banlung Property. Image ©Angkor Gold Angkor enters into a US$3.65 million earn-in agreement

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