The Asia Miner

SEP-OCT 2014

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

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September/October 2014 | ASIA Miner | 29 Indonesia A NEW resource estimate for Robust Resources' Lakuwahi project area on Romang Island represents a signifcant increase from the maiden 2012 estimate with total resource tonnes up 80%. Total gold metal is up 81%, silver metal up 152%, lead up 49%, zinc up 60% and copper up 35%. The estimate refects consistently positive results from intensive drill- ing over the past 2.5 years. It includes important new discoveries such as the Perak Basin VMS, high-grade base metals at Batu Mas Deeps and signifcant silver in the Batu Putih deposits. Robust says Lakuwahi is confrming its early promise as an important and world-class deposit of precious and base metals. It also says the Manganese Project Feasibility Study is on track for completion by the end of the year with four drilling rigs active. At Lakuwahi there are 81.717 million tonnes @ 0.40 grams/tonne gold, 25.8 grams/tonne silver, 0.07% copper, 0.58% lead and 0.60% zinc for 1.042 million ounces of gold, 67.9 million ounces of silver, 128 million pounds of copper, 1.04 billion pounds of lead and 1.086 billion pounds of zinc. Lakuwahi deposit consists of at least four separate deposits within close proximity. Mineralization in all four areas outcrops at surface and in the case of Batu Perak becomes covered and well preserved from erosion, by a shallow sequence of soft, unconsolidated sed- iments in the Perak Basin. The basin has been the main focus of exploration drilling for nine months and has resulted in some spec- tacular polymetallic intersections. Most deposits remain open and there are new, untested targets that have become evident. Defnition of the resource has advanced to a stage where Robust will begin preliminary mine and process fowsheet design aimed at unlocking the considerable value inherent in the Lakuwahi deposit. Preliminary metallurgical tests have shown promising fotation results and heavy-media (gravity) benefciation of sulphide mineralization. Coming test work will further investigate these opportunities as well as examine variability of material types across the deposits. There are also large quantities of barite and a high purity barite by-product could be created during processing of the polymetallic ore. Robust's chairman David King says, "Robust remains committed to developing two mines on Romang Island. The frst will be a high- grade manganese mine. Company research has shown the manga- nese resource is probably the best deposit for continuity and grade in Indonesia, and is the only deposit with extensive diamond drilling and a mineral resource estimated in accordance with the JORC 2012 code. "The company is well into a feasibility study on the manganese project which I feel confdent potential for a low-CAPEX, quick pay- back and high rate of return project, revealed by the initial scoping study." STRATOS Resources continues to progress its proposed acquisition of the Yinchen Tin Project on Belitung Island. The ASX-listed company has been engaged in detailed discussions with local partners and govern- ment offcials on appropriate measures to develop the project. The Stratos Board believes that a looming supply-side defcit due to a lack of signifcant new projects combined with continued demand for tin in key markets such as semi-conductors should provide strong support to the tin price in coming years. This view is supported by numerous industry commentators, including the primary tin association ITRI. To help achieve its aims, Stratos has recently completed an Aus$160,000 capital raising via a series of unsecured convertible debt instruments. Merchant Opportunity Fund continued to show support to the company by way of further investment while the directors also contributed signifcantly to the capital raising. The acquisition is being carried out in conjunction with international com- modities trading house, Metalcorp. The company is also seeking to ac- quire the Sambas Offshore Tin Project off the West Kalimantan coast. Following the acquisition of Yinchen, Stratos intends to undertake feld work. Any future work will be focused on identifying areas suitable for near-term production and cashfows, and to delineate a resource and reserve suitable for reporting under the JORC 2012 Code. Initial exploration will focus on the most prospective alluvial tin areas. Hard rock potential in close proximity to the alluvials will also be examined. Belitung and neighbouring island, Bangka, are in the South East Asian tin belt and represent the largest single tin export regions globally. The islands are located on the busy shipping routes of the Java Sea. Be- litung is 150km in diameter and is approximately equal distance from Singapore, Malaysia and Jakarta. The 60% interest in the 11 Production IUPs of Yinchen will be held by a Singapore-based vehicle owned on an equal basis by Stratos and Metalcorp Group. A subsidiary of Metalcorp, Tennant Metals, has been involved in the marketing and sales of tin product from Belitung for many years and is a major participant in the Asian market for tin. The remaining 40% is held by a local partner with long mining and pro- cessing experience on the island. Metalcorp has agreed to provide an offtake agreement for 100% of the tin producing from the 11 tenements and up to US$5 million of trade fnance. The 11 Production IUPs comprise 1200 hectares of highly prospec- tive area predominantly on the western half of Belitung. In most cases the tenements are surrounded by or adjacent to tenements owned by Indonesia's major tin producer PT Timah. Stratos seeks Belitung tin project Deposits and diamond drill hole locations at the Lakuwahi project area on Ro- mang Island. Lakuwahi resource tonnes up 80%

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