Nusantara Resources Increases Awak Mas Gold Reserves

THE DRILL SERGEANT: Nusantara Resources (ASX: NUS) announced an upgrade to the Ore Reserve of the company’s 100 per cent-owned Awak Mas gold project in South Sulawesi, Indonesia

Nusantara Resources declared an increase of 1.1 million ounces contained gold for the Awak Mas gold project Probable Reserve at a 0.5 grams per tonne gold cut-off using a US$1250 per ounce gold price.

The new figure has come in at 26.9 million tonnes at 1.32g/t gold for 1.14 million contained ounces.

Nusantara said the Ore Reserve estimate was based on the Mineral Resource estimate reported for the Awak Mas and Salu Bulo deposits in May 2018.

The upgraded Ore Reserve represents an 11 per cent increase in contained gold from the previous Ore Reserve and incorporates all drilling and mine planning completed as part of a Definitive Feasibility Study (DFS).

The company has planning underway for a program of further drilling to lift the resource category to the Measured category in the initial mining areas.

The company believes the closer spaced drilling has the potential for an uplift in grade through the intersection of additional higher-grade vertical zones it says are pervasive through the Awak Mas and Salu Bulo deposits.

The company also indicated that extensions to the proposed Awak Mas, and Salu Bulo pits, and the possible inclusion of the Tarra deposit into the mine plan, represent a near term opportunity to extend the mine life by a further three years.

“The 11 per cent increase in the Ore Reserve will be incorporated in the Awak Mas gold project Definitive Feasibility Study, representing further value improvement in the project,” Nusantara Resources managing director and CEO Mike Spreadborough said in the company’s announcement to the Australian Securities Exchange.

“The new Ore Reserve was based on the results of the completed resource drilling program, highlighting the potential upside in the project as exploration continues.

“This Ore Reserve, combined with the exploration potential of the project, underpins the company’s confidence in delivering the proposed long-life, low cost, stand-alone gold project at Awak Mas.

“The DFS is undergoing final data verification and will be released in late September confirming that the project is technically and financially robust.”