Augur: C. Java issues exploration IUP at Wonogiri gold project

By Ruli Setiawan

ASX-listed Augur Resources Ltd said that the Central Java provincial administration has recently issued an exploration IUP mining business permit for the Wonogiri gold and copper project in the province.

The company said in a statement obtained Monday that the area of the aggregate IUP covers both the Randu Kuning gold‐copper deposit area and an area identified for a stand‐alone quarry development adjacent to the deposit.

?The next step is to obtain an IUP production license to allow for quarry development. This requires completion of a base‐line environmental study and a feasibility study, both of which will commence forthwith,? Augur said in the statement.

Based on a previously completed regional market survey and initial economic analysis of Randu Kuning waste rock aggregate indicates possible EBITDA margins per ton of Rp40,000 ? Rp50,000 (US$3 ? US$4 per ton) from an extremely low capital expenditure startup operation (circa US$1.5 million), a scoping study is currently in progress.

The aim is to generate early cash flow from a low capex and opex aggregate operation which can be used to fund the development of the Randu Kuning deposit. An initial stand‐alone quarry development will also allow for development of aggregate market contacts prior to a significant increase in aggregate production from the Randu Kuning waste rock.

The company said it is currently evaluating proposals from interested parties who may provide quarry development, production management and offtake marketing services.

Augur holds a 45 percent economic interest in the Wonogiri license. Another key shareholder in the project is Rajawali Corporation.

Editing by Reiner Simanjuntak