Danusa to fund Trenggalek gold, copper exploration
Wednesday, January 27 2016 - 02:44 AM WIB
ASX-listed Arc Exploration Ltd said that PT Dana Tambang Nusantara (Danusa) has completed its due diligence and exercised its option as set under last year?s MoU to proceed with a farm-in on the Trenggalek gold and copper project in Indonesia?s East Java province.
Arc said in a statement Tuesday that Danusa will initially focus on evaluating the epithermal gold targets at Sentul and Buluroto prospects with the aim of quickly advancing the project toward a feasibility study.
The company further explained that Danusa may at their election fund expenditure of up to US$1,500,000 over the next 10 months for the first stage of exploration and has the option to continue on to the second and third stages of exploration within a total timeframe of 30 months. Danusa will manage and fully fund the exploration program and advises that it intends to initially concentrate its efforts on further exploring and evaluating the multiple epithermal gold targets already defined at Trenggalek.
Arc said Danusa has started planning a 3,800-meter drilling program, part of which is designed to further test the large goldbearing vein systems identified at Sentul and Buluroto prospects, located within in the southeast portion of the licence area. Drilling is expected to commence early in 2016.
It added that Danusa is also expected to seek to upgrade the current Exploration License into an Exploitation License if a potentially viable gold resource can be demonstrated at Sentul, Buluroto or on any other of the multiple gold prospects identified within the license area.
Exploration expenditure at Trenggalek for the quarter totaled US$19,509. During the quarter the company received A$500,000 as reimbursement of dead-rents and 2015 exploration costs, Arc said.
Editing by Reiner Simanjuntak