The Asia Miner

OCT-DEC 2017

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

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Page 23 of 55

22 | ASIA Miner | Volume 14 • Issue 4 | 2017 Indonesia ASIAMET Resources aims to complete a feasibility study for its Beruang Kanan Main (BKM) Copper Project in Kalimantan ear- ly next year with a development decision expected shortly after. The study will incorporate the recently upgraded resource estimate which showed a measured and indicated resource of 711.3 million pounds of copper at a 0.2% copper cut-off. The estimate increased measured and indicated resources by 207% on the 2015 report. It stands at 49.2 million tonnes @ 0.70% copper. There are also 28.7 million tonnes of inferred resources @ 0.6% copper for 241 million pounds. As part of the study Asiamet is undertaking engineering and met- allurgical studies as well as further optimisation of the BKM open pit design. A leachable copper model for the BKM deposit will be con- structed using sequential copper analysis data from all post 2013 drill core samples and an initial mineral reserve will be generated from the measured and indicated component of this model. The company has also commenced drilling to test multiple high potential copper and polymetallic targets identified in BK district. Initial drilling is taking place on the readily accessible BKZ prospect, which is a standalone, high value polymetallic target less than 800 metres north of the BKM deposit. BKZ is the first of multiple copper and polymetallic zinc-lead-cop- per-silver-gold targets to be drill tested over the coming months. Five holes were planned and were expected to be completed by the end of September. Access into drill targets at the BKW and BKS prospects is being prepared. Priority drill targets in the BK district, which is in Asiamet's KSK Contract of Work, have been generated using a combination of geological mapping, rock/soil geochemical sampling and Induced Polarisation (IP) geophysics. Drilling at BKM in the past 2-3 years has clearly shown minerali- sation is commonly associated with highly elevated copper in soil geochemistry coincident with a well-defined near surface IP geo- physics response. IP geophysics highlights mineralisation at BKM and identifies near- by targets for drilling at BKW, BKS and proximal to BKM. Asiamet's CEO Peter Bird said, "There are multiple occurrences of outcropping high grade mineralisation outside the current defined resource envelope and the operational team is moving quickly to test the grade and continuity." NUSANTARA Resources expects the first stage of a definitive fea- sibility study (DFS) into the proposed development of its Awak Mas Gold Project to be completed by the end of the year. The second stage is targeted for delivery in the second quarter of 2018. The DFS will advance the high-quality study work previously com- pleted by One Asia Resources into the project, which contains an estimated gold mineral resource of 1.74 million ounces. The first stage of the DFS will focus on mine plan optimisation us- ing the new resource estimate and revised mining costs, and process flowsheet enhancements incorporating the benefits of low cost grid power. The second stage will include updated resource and reserve estimates, formal DFS documentation and the DFS financial model. Nusantara has appointed a prominent group of experienced min- ing industry consultants for the DFS, including relevant Indonesian expertise - Cube Consulting (geology); AMC Consultants (mining, geotechnical and hydrogeology); Minnovo (metallurgy and pro- cessing); PT Geotechnical and Environmental Services Indonesia (Golder Associates) (hydrology, water and tailings management); PT Lorax Indonesia (environment studies); and PT Resindo Resources & Energy (infrastructure and lead consultant). Key milestones leading to completion of the DFS and an invest- ment decision are a resource update in Q1 2018 and a reserve estimate in Q2. In order to upgrade inferred resources to the indicated and mea- sured categories, and with the intention of sourcing further resourc- es, Nusantara is undertaking a diamond drilling program. Phase one will comprise 67 diamond drill holes for approximately 8230 metres at Awak Mas, Salu Bulo and Tarra deposits. Phase two will test for potential resource extensions. Nusantara's development strategy is for construction of a large- scale, low strip ratio open pit operation with ore to be processed by conventional flotation and cyanide leaching. Environmental approval has been received for the project, which is favourably located in non-forestry land close to established roads, ports and grid power, enabling the project to quickly advance towards development upon completion of the DFS. Nusantara aims to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years. BKM study nears completion The geology team at Nusantara Resources' Awak Mas Gold Project in South Sulawesi discusses the resource drilling program. Nusantara at work on Awak Mas DFS

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