Nusantara has increased the Mineral Resource estimate at its keystone Awak Mas Gold Project by 12% to more than 1.9 Moz of gold.


Oblique View Looking North-NorthEast. Extended Model >0.5g/t Au. Tanjung and High Wall Fault Traces (purple). Image source: Nusantara

The company announced positive exploration drill results for the eastern extension to the Awak Mas deposit. This followed high grade gold drill results from Awak Mas’s satellite deposit, Salu Bulo. Further drilling at Salu Bulo and the eastern extension are under way.

The overall Project in South Sulawesi is 100% owned by Nusantara through a seventh generation Contract of Work with the Indonesian Government.

The current total Indicated and Inferred Resource at 0.5 g/t gold cut‐off for the Awak Mas Gold Project, which includes Awak Mas, Salu Bulo and related deposits, now stands at 42.6Mt at 1.40 g/t gold for 1.93 million contained ounces.

Awak Mas’s 1.93Moz Mineral Resource estimate (US$1,400/oz optimisation shell) is based on the first 25 holes of a 67-hole program. Within a US$1,200/oz optimisation shell, the company has reported a 1.56Moz Mineral Resource estimate, which is a 71% increase on that reported previously.

This highlights the potential for a high resource to reserve conversion ratio for the current definitive feasibility study.

About 85% of the contained ounces within the Awak Mas deposit and about 80% of the contained ounces for the entire Project now fall in the Indicated Resource category and will be available for incorporation into the coming Ore Reserve estimate.

Nusantara’s Managing Director, Mr Spreadborough told shareholders that with a significant proportion of the Mineral Resource now in the Indicated category, the company was increasingly confident of a high resource to reserve conversion ratio.

“This reaffirms the company’s belief that the Awak Mas Gold Project will support a long-life open pit mining operation,” commented Mr Spreadborough.

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. The Project has environmental approval and is favourably located in non-forestry land close to established roads, ports and grid power.

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 140km2 contract of work.

Negotiations are also underway with the Indonesian Government on amendments to the Awak Mas contract of work, including fast tracking into a 33-year operations and production period.

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