Nusantara Resources is seeking to raise at least A$15 million in a proposed IPO on the ASX with the majority of funds to be used to advance the Awak Mas Gold Project in Sulawesi, Indonesia. Immediately prior to the offer One Asia Resources Ltd will undertake a demerged of Nusantara, which owns 100% of Awak Mas.
The project is held under a 7th Generation Contract of Work (CoW), a foreign investment framework granted by the Government of Indonesia. The CoW covers an area of 14,390 hectares and allows for a construction period of three years and an operating period of 30 years.
Within the Masmindo CoW a 1.74 million ounce gold mineral resource estimate plus a further 300,000 to 500,000 ounce exploration target has been estimated reported in accordance with JORC Code (2012) guidelines.
The Awak Mas project has been the focus of modern day exploration since 1991 by a succession of international exploration and gold mining companies including Battle Mountain, Lone Star, Placer Dome and Vista Gold.
Nusantaras experienced technical team assembled under the supervision of Nusantara managing director Michael Spreadborough has recently reviewed historic data including drilling, metallurgical test work and studies, along with a number of development studies.
This has resulted in a new geological model and resource estimate completed by Cube Consulting and reviewed by CSA Global. This work built upon re-logging, re-assaying and interpretation work completed by company geologists and consultants on the extensive core library of a representative sample set taken from the 1000 drill holes stored at site.
Directors believe the 1.74 million ounce indicated and inferred resource is a major step forward for the Awak Mas project.
The project encompasses a large 1.7km by 1.0km area of mineralisation with accompanying satellite resources at Salu Bulo and Tarra. Multiple zones of gold mineralisation and gold anomalies derived from limited historical regional exploration, including scout drilling and trenching results along a 10km regional trend within the Masmindo CoW, support the view that there is excellent potential for expanding resources.
An initial 8050 metre drill program is planned for 2017 to improve resource confidence and increase drill density in extensions of the known resource. In addition, further drilling is planned to test extensional and regional targets.
Directors believe the historic mining, metallurgical and infrastructure test work and studies along with advanced permitting, provides an enhanced launching point to rapidly take the project forward, with a definitive feasibility study planned for 2018 leading to a decision point for development in mid to late 2018.