THE DRILL SERGEANT: Nusantara Resources (ASX: NUS) announced a Mineral Resource update for the company’s Awak Mas gold project in South Sulawesi, Indonesia.
Nusantara Resources declared the Indicated and Inferred Resource estimate, at 0.5 grams per tonne gold cut‐off, for Awak Mas, consisting of the Awak Mas, Salu Bulo and Tarra deposits, to now stand at 45.3 million tonnes at 1.4g/t gold for 2 million ounces.
The company highlighted that 95 per cent of the contained ounces within the Awak Mas deposit and 90 per cent of the contained ounces in the Salu Bulo deposit now report to the Indicated Resource category.
This represents a 0.2 million ounce increase in contained gold in the Indicated Resource category compared to the previous Mineral Resource estimate.
Nusantara expects an increase in resource confidence with the reclassification from Inferred to Indicated to positively influence the Ore Reserve, open pit mine life, and project economics as the DFS progresses.
The DFS is currently on track for delivery in July 2018 with a further material upgrade in the Ore Reserve anticipated following incorporation of this Mineral Resource update.
The company explained the focus of the DFS to now being on value enhancement with attention to waste dump design, pit optimisation, materials handling efficiency and mine scheduling.
“Achieving 89 per cdent in the Indicated Resource category for the Awak Mas gold project is a direct reflection of strong confidence in the geological model,” Nusantara Resources managing director and CEO Mike Spreadborough said in the company’s announcement to the Australian Securities Exchange.
“This Mineral Resource update also confirms potential to increase the mine life beyond our initial ten-year target, which will be confirmed in the forthcoming DFS.
“It is pleasing to see our geological and feasibility work continuing to demonstrate Awak Mas as a long-life, low cost, stand-alone gold project with significant exploration upside for further growth.”