Augur: Local govt supports IUP license for Wonogiri gold project
Monday, May 2 2016 - 04:22 AM WIB
ASX-listed Augur Resources Ltd said that its Indonesian partner Rajawali Corporation in the Wonogiri gold and copper project, Central Java, has submitted an application for an aggregate IUP license over an area selected for potential quarry adjacent to and covering the main Randu Kuning copper gold deposit which also contains high quality aggregate.
Augur said in a statement that a recommendation letter has been issued from the Wonogiri Regency administration in support of the IUP issuance and the application has also been approved by the Regional Investment Coordinating Board (BKPMD). All approvals will now be submitted for issuance of an aggregate mining license (IUP).
?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 ? $4) from an extremely low capital expenditure startup operation (circa US$1.5 million), a scoping study is currently in progress,? the company said in the statement.
The aim is to generate early cashflow from a low capex and opex aggregate operation which can be used to further fund the development of the gold and copper Randu Kuning ore body.
The company said it has received and is currently evaluating several aggregate mining and production quotes from interested mining contractors who would provide quarry development and production management services, and aims to release an updated economic model and scoping study during the upcoming quarter.
Augur has discovered the Randu Kuning gold‐copper porphyry deposit in Wonogiri and defined a resource of 1.54 million ounces gold equivalent (AuEq). The Randu Kuning deposit remains open at depth and to the east and south. The JORC compliant resource comprises 90.9 million tons at 0.53 g/t AuEq (0.35 g/t gold and 0.10% copper), using a cut‐off of 0.2 g/t AuEq.
Augur holds a 45 percent economic interest in the Wonogiri license. Another key shareholder in the project is Rajawali Corporation.
Editing by Reiner Simanjuntak