The Asia Miner

OCT-DEC 2016

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

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36 | ASIA Miner | Volume 13 • Issue 4 | 2016 Indonesia PT AGINCOURT Resources has set aside US$12 million for explo- ration activities around the operating Martabe Gold-Silver Project in North Sumatra . The exploration is being carried out in a bid to maintain long-term production . The Martabe Contract of Work consists of 1639sqkm of the highly prospective Sumatra belt . There is 130km of strike length along the belt covering multiple project areas. A number of targets remain to be drill tested, including a mix of gold-silver and porphyry cop- per-gold targets . There are six known deposits within a 5km by 6km area with Pur- nama the largest so far . Others are Ramba Joring, Tor Uluala, Uluala Hulu, Barani and Horas . Exploration earlier this year 3-4km south of Martabe identified a new cluster of deposits, including a new 1km-long undrilled target at Horas South . The company plans to undertake drilling at this prospect while oxide pods at Horas West will also be drilled with other areas identified for surface follow-up. The company will also continue to convert resources into re- serves. To date in mine exploration and infill drilling has expanded the reserve tonnes and increased average grade, and Agincourt is confident this will continue. Agincourt president director Tim Duffy said that while most other mining companies were cutting down exploration costs due to the mining downturn, the company would maintain exploration in the hope that commodity prices would turn around . With the current exploration in addition to proposed capital ex- penditure of US$67 million, the company expects to maintain its annual production target for 2016 of 260,000 ounces of gold and 2 . 2 million ounces of silver . In 2015 there were 302,449 ounces of gold and 2 . 53 million ounces of silver produced at Martabe, higher than 2014 produc- tion of 275,515 ounces of gold and 2 . 23 million ounces of silver, and 2013 with 281,477 ounces of gold and 1 . 51 million ounces of silver . By the end of 2015, Agincourt's gold reserves stood at 2 . 8 million ounces and resources at 8 million ounces while the silver reserve stood at 27 million ounces and resources at 69 million ounces . Agincourt also hopes that a Martabe Improvement Program will result in improved efficiency and productivity. The program involves cost and capacity optimisation . Planned initial initiatives are optimis- ing the grinding circuit, debottlenecking the process plant, reducing energy costs and optimising the mine fleet, including use of larger trucks and excavators . ASIAMET Resources has started work on a feasibility study for the Beruang Kanan Main (BKM) Copper Project in Central Kalimantan following a positive preliminary economic assessment (PEA) . The company says the new study represents a major de-risking phase for BKM . The AIM-listed, UK-based company said the outcomes of the feasibility study would be used by a wide range of stakeholders, including potential financiers, to assess the project's viability. In its half year interim results statement, Asiamet said completion of the PEA was the highlight of the six months as it emphasised that the study had demonstrated 'excellent potential' for developing a robust low-cost project. As part of the feasibility study work Asiamet began a new drilling program at the end of May with two rigs working on site . The in- tention is to upgrade the majority of the project's current inferred resources into the measured and indicated resource categories . BKM currently hosts an estimated inferred resource of 49 . 7 million tonnes with a grade 0 . 6% copper for 657 million pounds of copper . Results received to date from the 2016 resource infill and exten- sion drilling program have shown 'excellent thickness' and a conti- nuity of near-surface high-grade (1-3%) copper mineralisation . Delineation of these discrete zones of continuous, shallow, higher grade mineralisation that is easily accessible for early mining has poten- tial to lower operating costs and further enhance project economics. By mid-August 33 holes for 3400 metres of diamond core drilling had been completed with three holes in progress . As well as con- firming thickness and continuity, it is anticipated that the results will further reduce the already low strip ratio of the potential open pit in the southern part of the BKM deposit . Asiamet's chief executive officer Ton Manini said in mid-August, "Resource evaluation drilling at BKM continues to meet or exceed our expectations . The grade and continuity of mineralisation ap- pears to be very consistent and we are seeing higher grade miner- alisation shallower than anticipated . "A lower strip ratio zone, coupled with higher grades has the po- tential to lower operating costs early in the mine life and further en- hance the already strong economics of the BKM project as outlined in the PEA . "The feasibility study is ramping up with mine engineering and in- frastructure studies about to commence in addition to the resource drilling, metallurgy, geo-technical and environmental studies cur- rently in progress . " BKM feasibility study progresses BKM feasibility study progresses The processing facilities at PT Agincourt Resources' Martabe Gold-Silver Project in North Sumatra. Agincourt Agincourt continues Martabe exploration continues Martabe exploration

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