Waseco re-establishes C. Kalimantan gold project
Monday, September 13 2010 - 05:52 PM WIB
The Company first acquired an interest in the project in the mid-1980?s, following a senior mining company having commissioned a study of the gold recoveries from the river terraces.
Waseco?s focus was on the actual river, where the gravels are also gold bearing, it said.
An independent Feasibility Study was commissioned in order to establish a gold resource within the river gravels and on the river terraces, to determine the viability of mining.
?While the results of the Study were very positive, production financing was not available due to then current market conditions. With the recent significant increases in the prices of gold and zircon sands, which can be recovered at the same time, management believes that the economics of the project should be more robust than ever.? It said.
According to the Company?s website, the Tewah project has 750,000 ounces of gold resources with additional 2 million ounce gold resource identified on riverbanks.
Plans are being formulated to re-establish title to a significant portion of the original holdings and to carry out the requisite permitting and studies to determine the viability of modern gold operations, it added.
Company President, Richard Williams remarked: ?We established the presence of gold in the Kalahayan River and along its banks in the 1980?s and determined that the cost of recovering the gold would place this project in the lowest quartile of world gold operations. Management has been monitoring this area ever since. Changes in the mining laws and in the investment climate appear to have made this an opportune time to return to Indonesia. (alex)