Encouraging Awak Mas drill results

Nusantara Resources has received encouraging assay results from the first two holes of a phase 1 resource drilling program at Awak Mas Gold Project in South Sulawesi, Indonesia. The results confirm tenor and extent of mineralisation both within and beyond the existing mineral resource.

The phase 1 program is designed to target areas of unclassified gold mineralisation and to upgrade inferred resource mineralisation across the Awak Mas, Salu Bulo and Tarra deposits.

The drilling program has progressed with 16 holes completed to date within the Awak Mas deposit. Two drill rigs are assigned to the phase 1 program with a third rig due to commence in early November.

Assay results from the first two drill holes have successfully validated the mineral resource model, expanded the area of known mineralisation and demonstrated potential for deeper mineralisation. The holes both intersected multiple mineralised zones of strong quartz veining and brecciation over significant downhole intervals.

In the hole within the Rante domain, results included 8 metres from 41.8 metres @ 2.5 g/t gold, 6 metres from 140.8 metres @ 1.0 g/t, 2 metres from 197.3 metres @ 1.6 g/t and 4.9 metres from 206.3 metres @ 0.6 g/t.

In the other hole within the Lematik domain, results included 35.4 metres from 35.6 metres @ 1.7 g/t, 20 metres from 114 metres @ 0.7 g/t, 17 metres from 343 metres @ 0.6 g/t and 6 metres from 365 metres @ 2.7 g/t.

The deeper intersection in the second hole demonstrates potential for the gold mineralisation to extend below the current US$1400/ounce resource shell and will be the focus of later exploration drilling.

Results from phase 1 drilling will be incorporated into a re-estimation of the mineral resource in advance of the ore reserve calculation by mid-2018.

Nusantaras managing director and CEO Mike Spreadborough said, The early stages of the drilling program are validating the resource model and importantly the potential for additional mineralisation within the resource shell. This work is confirming the potential for the development of the Awak Mas Gold Project into a long-life operation and successfully growing the scale of this project.

The Awak Mas deposit drilling is focused on the Rante, Tanjung and Lematik domains and comprises a 26-hole program for 4165 metres. It is estimated this will take another month to complete. This will be followed by a 12-hole program for approximately 1200 metres at the Salu Bulo deposit.

The two drill rigs will then return to the Awak Mas deposit to complete the remaining 22 holes for approximately 1765 metres focusing on the Ongan and Mapacing domains.

The third rig will complete a 7-hole, 1200 metre program at the Tarra deposit. This rig will then complete a scope of work for the definitive feasibility study focused on geotechnical and hydrology technical assurance.