Augur reports Java gold project update
Thursday, October 25 2012 - 02:17 AM WIB
Augur Resources Ltd is a resource development company with a focus on the Wonogiri gold and copper project in Indonesia.
The Company's Wonogiri project is located in central Java. Detailed exploration by the Company has defined the Randu Kuning gold-copper porphyry deposit. The resource consists of 1.54 Moz AuEq and remains open at depth and to the east and south. A number of additional advanced targets have also been identified at Wonogiri.
Wonogiri Project(Augur 80%)
Augur holds an 80% interest in the Wonogiri project with PT Oxindo (a subsidary of MMG Limited) holding 10% and four individual shareholders controlling the remaining 10%.
Wonogiri is one of the latest major discoveries in the highly mineralised Indonesian achipalego. Between 2009 and 2012, modern exploration techniques have been applied to define a major gold-copper deposit at Randu Kuning. In July 2012, Augur announced the maidien JORC compliant resouce of 90.9 million tonnes ('Mt') 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 (see ASX release dated 10 July 2012). The resource estimate includes oxide, transition and sulphide components of the deposit. The sulphide component accounts for 95.7% of the estimated resource tonnes and this has been the focus of much of the ongoing metallurgical studies. Metallurgical testing has been highly favourable with recoveries of up to 89.0% of gold and 96.1% of copper. Concentrates of up to 90.6 g/t gold and 21.2% copper have been achieved during initial concentrate optimisation studies.
Randu Kuning is only one of a number of prospects at Wonogiri.
During the quarter, the required expenditure threshold for the Wonogiri project was met,resulting in Augur achieving 80% ownership of PT Alexis Perdana Mineral, the holder of the Wonogiri licence. This key milestone is a significant achievement for the Company as the Wonogiri project has shown that it is a quality project with a significant resource and significant potential for additional resources to be defined.
Also during the quarter, approval was received for the conversion of PT Alexis Perdana Mineral to an official foreign owned company (locally known in Indonesia as a 'Penanaman Modal Asing' or 'PMA'). Augur's wholly owned subsidiary, Wonogiri Pty Ltd, is now the registered holder of 90% of PT Alexis Perdana Mineral (10% of which is held beneficially for MMG?s PT Oxindo), thereby ensuring that Augur's ownership of its interest in the Wonogiri licence is secure.
The Randu Kuning prospect contains a highly altered wall rock porphyry. Mineralisation is associated with quartz stock working and as disseminated mineralisation within a series of micro-diorite to medium grained diorite intrusives. Essentially, the mineralisation is a coherent near vertical deposit which has been identified to a depth of at least 500 metres and remains open at depth, to the east and to the south.
Ground geophysical surveys at Wonogiri have identified a number of targets in addition to that of Randu Kuning. Systematic follow up of these targets continues.
The Wonogiri project has quality infrastructure supporting the project with it located approximately 30 kilometres to the south of the provincial city of Solo and is easily accessible by daily flights from the capital Jakarta and a short one hour drive by car on sealed roads. The surrounding area has grid power, a large dam and numerous river and stream systems. Altitude of the Randu Kuning deposit is at approximately 200 metres above sea level. (end of excerpt)