Positive results from Randu Kuning study

An updated internal scoping study for the Randu Kuning deposit of Augur Resources’ Wonogiri Gold-Copper Project in Java, Indonesia, has delivered positive results. The study confirms the potential for development of the deposit.

The original study has been updated to include the enhanced project economics resulting from the aggregate potential of Randu Kuning. It also takes in to account recent metallurgical studies and current lower costings for fuel and equipment.

The study was undertaken by Augur technical staff and based on comparable mining operations in Indonesia and Australia.

The project is supported by a low strip ratio, good metallurgical recoveries, excellent access to infrastructure and national grid power. The study focused on an open pit mining operation with material treated by gravity concentration and flotation to produce a gold (+ silver) rich gravity concentrate and a copper (+ gold, silver bearing) concentrate. The study assumed 50% of in‐pit waste rock would be sold as aggregate.

As Augur does not currently have adequate capital and operational finance to develop the Wonogiri project and scoping studies are not at a stage to secure project financing, the company is precluded by recently released ASIC regulations from announcing details of the scoping study and its related cautionary statements.

As part of the update a JORC-compliant resource estimate of the deposit was completed by Trevor Leahey of Computer Aided Geoscience Pty Ltd, Australia. At a 0.2 grams/tonne (g/t) gold equivalent cut-off the total contained resource is now 81.56 million tonnes @ 0.38 g/t gold and 0.11% copper for 996,500 ounces of gold and 190 million pounds of copper.

At a 0.5 g/t cut-off, which is the grade used in the scoping study, the total resource is 20.95 million tonnes @ 0.85 g/t gold and 0.16% copper for 533,000 ounces of gold and 74 million pounds of copper.

Based on results of the internal study Augur plans to continue with completing advanced metallurgical test work in regards to production of a copper (+ gold) concentrate via flotation processing.

The potential to recover a significant portion of the contained gold (and silver) via gravity concentration will also be further evaluated as will further processing of a gold‐rich gravity concentrate at an offsite location using intensive leach processing thereby removing the requirement to obtain a permit for cyanide use at mine site.

Commencement of initial geotechnical and hydrogeological studies will also proceed to confirm pit slope stability and a water use plan.

After receiving positive results from aggregate test work, Augur is in discussions with third parties as part of evaluating several aggregate production scenarios.

This includes offtake agreements and also initial production from standalone quarries adjacent to the conceptual Randu Kuning open pits.

The latter could provide a low capital cost opportunity to get early cash flow with which to advance development of the Randu Kuning mine and develop an aggregate market presence prior to expanded production upon Randu Kuning start‐up. Production of manufactured sand
product from crushed rock dust may also be feasible.