Nusantara Resources has commenced a definitive feasibility study (DFS) into the proposed development of its Awak Mas Gold Project in South Sulawesi, Indonesia. The project contains an estimated gold mineral resource of 1.74 million ounces.
The DFS will advance the high-quality study work previously completed by One Asia Resources and will be delivered in two stages.
Initially, the DFS will focus on mine plan optimisation using the new resource estimate and revised mining costs, and process flowsheet enhancements incorporating the benefits of low cost grid power. This first stage will be delivered in late 2017.
The final DFS is targeted for delivery in Q2 2018 including updated resource and reserve estimates, formal DFS documentation and the DFS financial model.
Nusantara has appointed a prominent group of experienced mining industry consultants for the DFS, including relevant Indonesian expertise - Cube Consulting (geology); AMC Consultants (mining, geotechnical and hydrogeology); Minnovo (metallurgy and processing); 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 investment decision are a resource update in Q1 2018 and a reserve estimate in Q2 2018.
Nusantara’s CEO and managing director Mike Spreadborough said, “We are delighted to have secured the services of such a diverse and skilled group of top shelf consultants ensuring the DFS is of a standard capable of supporting an investment decision and funding for the proposed future development of this world-class gold project.”
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 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 development upon completion of the DFS.
Nusantara’s second strategy is to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years. Multiple drill-ready targets have already been outlined extending from the three main deposits and in other areas of the 140sqkm CoW.