West Wits continues facing obstacles in Derewo gold project

By Ruli Setiawan

ASX-listed West Wits Mining Limited said on Friday it continued to be frustrated in its attempts to commence its alluvial mining operation at its Derewo River Gold Project, Papua Province during the quarter.

Under the current position the establishment of Derewo is predicated on local government and law enforcement agencies successfully removing the illegal mining population from the proposed project minesite.

However given the time that has elapsed since the local regent issued formal orders (17 June 2014) to the chief of Paniai police precinct and the Paniai mines department to shut down all illegal mining activities within the regency and with no action yet undertaken West Wits has now employed alternative strategies in a bid to expedite this process.

During the quarter discussions were initiated with a number of parties which have the capacity provide support and effect change at Derewo. Discussions are ongoing and West Wits will provide an update to the market once an agreement has been reached.

The Derewo River Gold Project is owned through the company's local subsidiary PT Madinah Qurrata'ain (PTMQ) in conjunction with local partners the Suhari family of Makassar. The project consists of one granted 40 ha mining licence, an application for a further 491 ha mining licence, a granted exploration licence over 86,000 ha and two further applications over 43,000 ha.

West Wits through PTMQ holds a 50 percent interest in the granted 40 ha mining lease as well as a further 491 ha of mining leases pending from the Provincial Government. West Wits also holds 50% of the exploration rights for the surrounding area, with the ability to increase its ownership to 80% through the completion of $2 million in exploration expenditure.

Editing by Johannes Simbolon