The Asia Miner

JAN-FEB 2018

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

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80 | ASIA Miner | Volume 15 • Issue 1 | 2018 Exploration MYANMAR Metals plans to begin a new program of drilling in January leading to an updated mineral resource estimate at the Bawdwin polymetallic project in Myanmar. The company intends to produce a new es- timate for the zinc, lead, silver and copper project in the second quarter of 2018. The aim of the drilling is to improve inferred resources to the indicated category within the first pit shell. This work follows the completion of a scoping study into development of an open pit mining operation at the project with con- ventional milling and flotation circuits. As further follow-up to this study, the com- pany also intends to carry out supplemen- tary technical studies in the first half of this year, including metallurgy and environmen- tal assessments. This will lead to exercise of its option in May 2018 to purchase the project from Win Myint Mo Industries Co, the Myanmar com- pany that holds the 38sqkm mining conces- sion under a production sharing agreement with state mining company, Mining Enter- prise No 1. If the option is exercised, Myanmar Metals will then prepare a definitive feasibility study. The scoping study was completed by CSA Global and is based on the inferred resource estimate of 75.9 million tonnes @ 4.6% lead, 2.3% zinc, 0.25% copper and 119 g/t silver. The results confirm the potential of the Bawdwin project to be redeveloped as a large-scale mining operation with robust project fundamentals, rapid capital pay- back, ongoing positive operational cash flow, and low technical risk. Bawdwin will be assessed more fully in a definitive feasibility study. Myanmar Metals' chairman John Lamb said, "I am delighted that the scoping study confirms the Board's long-held view of the outstanding potential and many advantages at Bawdwin. It describes a productive, low- cost open pit mine that generates an imme- diate return and funds the development of processing and mining infrastructure for the long-term. "The concept outlined comprises three stages of pit cut-backs; use of the existing tunnel and railway corridor for ore transport; and treatment in a standard sulphide flota- tion plant. "Concentrate produced would be sold to buyers in China via the Yunnan railway due to reach the Myanmar border at Ruili in 2018." Myanmar Metals plans new Bawdwin drilling Myanmar Metals' Bawdwin project is in Shan state of northern Myan- mar. Nusantara Resources has started diamond drilling focusing on the mine corridor at the Awak Mas Gold Project in Sulawesi, Indonesia. The phase one exploration program is designed to test for exten- sions to the defined mineralisation at the Awak Mas and Salu Bulo deposits and explore for structural repetitions along the intervening corridor. A recent review has highlighted three high priority resource exten- sion targets: • To the immediate east of the highwall fault at the eastern extrem- ities of the Awak Mas deposit; • Along strike to the north and to the west of Salu Bulo on the Bandoli and Lelating structures; and, • Possible repetitions in the approximately 1km corridor between Awak Mas and Salu Bulo. Nusantara's increased confidence in its understanding of the Awak Mas deposit geological model has enabled the application of current concepts at a larger scale. When considering structural repetitions seen at an individual domain scale, several clear targets have emerged which are being tested by an initial four-hole dia- mond drill program. This program is underway with first results ex- pected in early January 2018. The Awak Mas deposit mineral resource has previously had very limited drilling to the east, with the Rante Domain open in this direction. At Salu Bulo one hole will target a potential inter- section zone. After receiving all results from its resource drilling program, includ- ing the diamond holes, Nusantara aims to prepare an updated min- eral resource estimate in late January. Discovered in 1988, the project has had 124km of drilling com- pleted in over 1000 holes. The project is owned through a 7th Gen- eration Contract of Work (CoW) with the Indonesian Government. Nusantara's development strategy is for construction of a large- scale, low strip ratio open pit operation with ore to be processed by conventional whole-of-ore cyanide leaching. Environmental ap- proval has already 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 devel- opment upon completion of a DFS by mid-2018. Nusantara's second strategy is to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years. Drilling targets Awak Mas mine corridor

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