Austindo reports Q2 Indonesian mining activities
Friday, July 30 2004 - 09:46 AM WIB
HIGHLIGHTS
Cibaliung Gold Project ? Indonesia
? The draft Bankable Feasibility Study was completed and submitted to the joint venture participants for review.
? Permitting and associated approvals for the project are well advanced.
? Funding options are being considered and two bank consortiums have been short listed to provide proposals for the debt financing component of the project.
Project Generation ? Indonesia
? The Company is looking to capitalize on its ?in-country? capabilities and is actively seeking new projects to add to its portfolio. This initiative is at an advanced stage and specific opportunities have been identified.
CIBALIUNG GOLD PROJECT - INDONESIA (83.75%)
The Company?s development focus in Indonesia is the Cibaliung Gold Project which is controlled through PT. Cibaliung Sumberdaya. a joint venture company established between the Company and PT. AnTam Thk. Cibaliung is located in Banten Province in the Pandeglang Kabupaten (Regency) near the western tip of the island of Java 150km south west of Jakarta.
In accordance with the terms of the joint venture agreement the Company?s interest in the Cibaliung Project increased to 83.75% at the end of the Quarter due to the sole funding of the joint venture exploration.
Bankable Feasibility Study (BFS)
During die quarter the draft BFS was completed and submitted to the joint venture participants for their review.
Environmental Permitting
The regional authority approved terms of reference for the environmental permitting process during the quarter and the environmental approvals process is now well advanced.
Financing
Financing options are being investigated and two bank consortiums have been short listed to provide proposals for the debt financing component of the project and they will shortly commence their detailed review of the Feasibility Study and their project due diligence.
Exploration
Exploration at Cibaliung has continued with the aim of locating new high grade ore shoots. A geological model has been developed for the project area and key targets have been defined and grouped into:
? Targets within the proposed Mine Project Area without cover rocks: Rorah Kadal, Cikeni, West Cibitung (Central Zone), Northern Cikoneng, Cibeber, Cibengang, Rorah Kapur, and Cikamancing;
? Targets within the proposed Mine Project Area with cover rocks: North Cikoneng and South Bitung (and Mastar);
? Regional targets (outside proposed Mine Proiect Area): Cingenge, Cikarae, Muara Cikeni, Bukit Breksi, Ramada, South Dam and other regional prospects.
Drilling of selected target areas was carried out during the quarter to obtain further geological information and to test the model. This first phase of scout exploration drilling amounted to 1040m has been completed with a total of 5 holes in Rorah Kadal. Cikeni, West Cibitung. and Northern Cikoncng. None of these holes intersected economic mineralisation hut all have provided useful information to assist in planning the next phase of drilling to be carried out in the second half of this year.
PROJECT GENERATION - INDONESIA
The Company?s initiative to acquire additional project areas in Indonesia is at an advanced stage and the Company is actively pursuing a number of specific targets. (end)