Augur: FS for Randu Kuning gold project submitted to ministry
Tuesday, January 31 2017 - 05:35 AM WIB
ASX-listed Augur Resources Ltd said that it has submitted feasibility study (FS) report for the development of the Randu Kuning deposit at the Wonogiri gold and copper project in Central Java, as required by the Ministry of Energy and Mineral Resources.
?Together with JV partner Rajawali and Indonesian consulting group Geomine, the company submitted a feasibility report as required by the Indonesian Ministry of Mines & Energy,? Augur said in a statement on Tuesday.
The company said the report provided detailed information for a proposed gold‐only operation involving open‐pit mining to produce gold bullion via gravity and CIL processing of ore. Under this scenario no by‐product copper would be recovered.
However, it is the intention of the company, pending completion of ongoing metallurgical tests, to determine the feasibility of production of a copper‐gold concentrate via a gravity + flotation process flowsheet. ?This will also take into account pending revisions to the current Indonesian mining law regulations,? the company said.
Additional testwork was started in mid‐September 2016 to optimize recoveries of copper and gold via combined gravity and flotation processing to produce a gold‐rich, copper concentrate. The current testing has established a baseline flowsheet and remaining work will involve locked cycle flotation tests. This work will indicate what recoveries and concentrate grades might be expected under actual operating conditions. The work is being completed at PT Geoservices in Cikarang, West Java under the supervision of consultant Dr. Mark Steemson.
The company said it is also assessing the availability and suitability of second‐hand processing plants for use at the Wonogiri project. Under the current Indonesian Mining Law, the export of less than 99.99 percent copper is not permitted unless direct approval from the Indonesian Government is obtained and export tariffs paid. As such, the company said it is in discussions with several groups in regards to offtake of Wonogiri concentrate.
The Central Java Provincial Government recently issued an exploration IUP for aggregate to the Joint Venture company. The area of the 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 permit to allow for quarry development. This requires completion of a base‐line environmental study and a feasibility study, both of which will commence during the March 2017 quarter. The company said it is also in discussions with aggregate users regarding potential offtake agreements.
The Wonogiri project, which is located in central Java, Augur is advancing the Randu Kuning gold‐copper porphyry deposit. Augur holds a 45 percent economic interest in the Wonogiri license. Another key shareholder in the project is Rajawali Corporation.
Editing by Reiner Simanjuntak