G-Resources: Martabe project update
Thursday, October 21 2010 - 12:52 AM WIB
1. Engineering
Engineering works for the project have now advanced to greater than 70% complete. Ausenco, the EPCM project manager currently has 62 engineers, draftsmen and other project people working on the project in Brisbane, Australia and at the Martabe Project site.
The final design for the TSF is nearing completion. The focus of the project team is to bring this to a conclusion and award the contract for construction.
2. Contracts and Construction Progress
As previously announced, the 5 1/2 year mining contract was awarded to Leighton on 26 July 2010. As there are significant synergies between the early mining works, the plant site earthworks and the TSF, Leighton have been issued a Letter of Intent for the new plant site earthworks and are currently pricing the construction of the TSF.
Leighton has already mobilized significant equipment to the Martabe Project site (see photographs on the Company?s website www.g-resources.com). Civil work has commenced on a number of fronts, including now achieving access development to the TSF, the development of the explosives storage and preparation plant area, access roads to infrastructure facilities, achieving access development to the new plant site as well as the construction of a number of sedimentation control structures.
Another contractor who is now active on site is Duta Graha Indah (DGI) who has been awarded earthworks and roadworks associated with the development for the third and final stage of the camp accommodation facilities. DGI have also been awarded a contract for development of the water diversion structures and works have commenced.
The 450 man new camp canteen is now in operation and works have commenced on the final stages of the camp accommodation units.
3. Schedule
The project remains on schedule to meet the target to produce first gold bullion in Q4 2011.
4. Exploration and Resources
A new Resource Statement for Ramba Joring is nearing completion and will be announced as soon as available.
Exploration continues at Martabe and across the Company?s 1,639 square kilometres Contract of Work area. Five drill rigs are operating at Martabe completing resource definition work at Tor Uluala and exploration at Tor Uluala West, Barani South and deep beneath Ramba Joring. Encouraging alteration and potential mineralisation has been encountered in all areas; assay results are awaited. Drill targets have been defined in three regional prospects and preparations for drilling are underway.
5. Primary Ore
The resources at Pit 1 include a substantial amount of primary sulphide material. As the sulphide content increases, the recovery of gold and silver decreases and as a result the economics of mining and treating that material becomes less favourable. This high sulphide/low recovery ore type is called primary or refractory ore.
The sulphide resources at Pit 1 have typically not been included in reserves because of lower economics in part due to lower recoveries. The exploration programme has not closed off potential sulphide resource extensions.
The Company has been conducting metallurgical test work on this primary sulphide mineralization to assess the different metallurgical techniques for extracting the gold. Whilst test work is at an early stage, the results have been very encouraging with gold recoveries around 80% being achieved with one of the techniques.
The Company will consider options for development of a primary resource, i.e. more drilling and geological interpretation to define the primary ore potential as well as further metallurgical test work to define a potential process route.
Successful development of a primary material process treatment route at Martabe could lead to enhanced reserves which would have the potential to significantly transform the life and the long term development of the Martabe mine.
6. Human Resources
A number of key individuals have been recruited in the last 3 months, including mining engineers, surveyors, additional community relations staff, additional environmental staff and a Media Relations Manager.
The Company has also secured the services of a highly experience project management professional, Graeme Walsh, who is managing project activities on a daily basis. Walsh is a seasoned professional with more than 30 years experience who has worked on projects in various countries including Indonesia, East Timor, Mongolia, Afghanistan and Australia.
About Martabe
The Martabe project is located on the western side of the Indonesian island of Sumatra in the Province of North Sumatra, in the Batangtoru sub-district. The project is established under a sixth generation Contract of Work (?COW?) which was signed in April 1997. The COW defines all of the terms, conditions and obligations of both G-Resources and the Government of Indonesia for the life of the COW.
Martabe with a resource base of 6.5Moz gold and 66Moz silver is G-Resources Group?s core starter asset, around which a globally competitive, Asia-Pacific focused gold company will be built. Already in construction, Martabe is expected to commence production in the last quarter of 2011 at a rate of 250,000 oz/a of gold and 2-3 million oz/a of silver at an anticipated low cash cost of US$280/oz of gold.
G-Resources is seeking to rapidly grow production to more than one million ounces of gold annually through exploration of the large and highly prospective COW area and through acquisition of other quality gold assets. The Martabe project enjoys the strong support of the Indonesia Central, Provincial and Local Governments and the nearby communities of Batangtoru. (end of edited release)