West Wits updates Indonesia gold project
Tuesday, January 31 2012 - 08:53 AM WIB
West Wits Mining Limited during the quarter continued to progress both its Derewo River Gold Project (?Derewo?) in Papua Province, Indonesia
Development of Derewo Project
The Company has continued to progress the Derewo River Gold Project (?Derewo?) towards commissioning of the alluvial circuit by the end of the March 2012 quarter. The December quarter has been a period characterised by laying the foundations for the development of the Derewo River Gold Project. The Company has been working hard with all interested parties, including the local and regional government, key indigenous community representatives, service providers, local, regional and central forestry and mines departments. All the relevant stakeholders appear supportive of the prospect of a modern mining operation being established at the Derewo site.
A key step in this process of development has been the implementation of the Company?s socialisation plan with the local indigenous community who will form a key part of the workforce for the Company. The relationship with the local Wolami people is strong and has developed over a number years. West Wits is one of very few mining companies in Papua that has completed an indigenous agreement. As part of this agreement the Company will establish a medical clinic and school for the local people as well as training and scholarship program for those to be employed by the Company.
The Company has also begun to expand its operations team in preparation of activities beginning to ramp-up on site. West Wits has now employed full time Community and Government affairs staff to manage the relationships of these key stakeholders in the project. Offices have been established in Jakarta to manage relationships with the central government and mines departments and to handle procurement of key equipment for the operation as well as in Nabire which will act as a staging post to supply the operation at Derewo and manage local stakeholders including governmental and community relations.
Operators have been engaged for both the excavator and front end loader which are onsite and ready to commence work. Development of the airstrip, access roads and tailings and settling dams is beginning. The development of infrastructure is behind schedule due to completing discussions with all key stakeholders in the development of the project. However the Company does not anticipate this will impact its stated objectives of commissioning the alluvial circuit by the end of the current quarter.
The development of the alluvial circuit can also continue to progress as the Company waits for its Forestry Permit. Without the permit West Wits is unable to begin mining at Derewo however the Company does not require the permit to continue to develop its infrastructure in preparation. West Wits has received sign off from the Paniai (local) and Papuan (provincial) Forestry Departments for the development of the Derewo project and is now waiting for the administrative process to be completed. The Forestry Permit remains the final permit to be received before commercial operations can begin.
As previously advised the topographic survey team completed their site visit in the last quarter allowing for the development plans for the alluvial circuit to be completed. Multiple Dam locations have been identified providing gravity feed for sluicing operations. The airstrip centreline has also been selected which will provide a landing distance of 800m, sufficient to land a Cessna Caravan and other locally operated aircraft. This will be a key development as securing aircraft support will reduce transport costs to about a third of what they would be with helicopter support. Road lines have also been selected. The Company looks forward to updating the market on the progress of development at Derewo in the coming weeks.
Exploration
The Company?s fulltime exploration manager for the Derewo project has commenced the review of the geology and geochemistry which will be combined with a structural assessment once the processed satellite images are delivered this week. A review is currently being completed on the Freeport geophysical data received last quarter to identify any possible intrusives. Once this review has been completed field operations will begin in the next month with sampling programs to be undertaken at the Company?s primary gold anomaly, Wopogi.
Preview for next quarter
Exploration
The establishment of the alluvial operation will also act as a field base from which the regional exploration programs will be managed.
The base is in proximity to the Company?s primary Wopogi target. The initial exploration program at Wopogi will consist of geological mapping including structural, lithology and alteration mapping together with detailed geochemical sampling of streams and outcrop. It is anticipated this follow up sampling work will start in February incorporating further stream, soil and rockchip sampling programs. From this work and the reprocessing of the Freeport geophysical data, the Company is planning to have drill targets by the end of the March quarter. (end of excerpt)