Nusantara Publishes Maiden Ore Reserve for Awak Mas Gold Project

Australia-listed Nusantara Resources (ASX:NUS) published a maiden ore reserve of 1 million ounces for its Awak Mas gold project in Indonesia on Wednesday (April 18).

“Our maiden ore reserve represents a significant milestone for the company and now places Nusantara among an elite group of ASX-listed gold development companies,” said CEO Mike Spreadborough.

According to Nusantara, the report supports a long-life and low-cost gold operation at a processing rate of 2.5 million tonnes per year. It also shows Awak Mas will have good access to established power and transport infrastructure.

The Awak Mas gold project’s probable reserves stand at 23.7 million tonnes at 1.35 g/t gold for 1,030,000 contained ounces at a cut off of 0.5 g/t gold and using a gold price of US$1,250 per ounce.

“This ore reserve combined with the exploration potential of the project demonstrates the value of a proposed long-life, low-cost and standalone gold project at Awak Mas,” Spreadborough added.

The Awak Mas deposit, located in Sulawesi, was discovered in 1988. The project has had over 135 kilometers of drilling completed in more than 1,100 holes.

Looking ahead, Nusantara is working on a definitive feasibility study (DFS), which is expected to be finished in July.

A material upgrade in the projects’s ore reserve is on track to take place in June, and will be used to finalize the DFS. The focus of the report will be on waste dump design, pit optimization, materials handling efficiency and mine scheduling.

As of 10:30 a.m. EST on Thursday (April 19), Nusantara was up 1.89 percent, trading at AU$0.27.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.