West Wits has yet to start gold operation at Derewo

By Romel S. Gurky

ASX-listed West Wits Mining Limited announced on Thursday it has yet to commence alluvial mining operations at its Derewo River gold project, Papua Province.

As previously announced PT Intan Angasa Aviation (PTIA) was engaged with the objective of facilitating access at the Derewo project. The timeline originally agreed with PTIA has been extended and PTIA is confident it shall resolve the access issue imminently. As part of facilitating access PTIA has provided a fully operational helicopter and pilot to provide logistical support to the project pending reinstatement of the air strip to operational status.

The company said its employees are now on site preparing for a commencement of an alluvial operation in the 81 creek. The mess base at the project was recommissioned last week and employees are now servicing the heavy machinery located at site. Some minor works will be undertaken on the airstrip and road as machinery is moved down to the initial alluvial site. In anticipation of the site being fully secured the company has begun delivering supplies, fuel and provisions to the base at the project?s site.

?Management are cautiously optimistic that commencement of operations at Derewo will soon be possible,? the firm said.

Under the agreement with West Wits?s Indonesian subsidiary, PTIA is required to facilitate unimpeded access, mining and security for operations at Derewo. All costs incurred through the implementation process will be deferred until 30 days after commencement of mining and are then payable by the company?s local operating subsidiary (PTMQ).

On delivering the unimpeded ability for the company, to enter, exit and safely control the entire alluvial mining area PTIA will receive a milestone payment. PTIA will be entitled to 50% economic interest in the alluvial project and a 20% shareholding in PTMQ on completion of the milestone. This does not dilute the company?s interest in the Derewo project.

Editing by Johannes Simbolon