West Wits updates Indonesia gold project
Friday, January 24 2014 - 08:10 AM WIB
Alluvial Gold Project, Papua Province (WWI: 50%)
West Wits Mining Limited (WWI) during the quarter experienced further delays with regard to commissioning its alluvial gold project in Derewo River, Papua Province. The Company was requested by local government to defer commencement for up to 8 weeks whilst it implemented its plans to clean up the illegal activities on the site and provide access to the Company.
At a public meeting held in November 2013, the Bupati (Mayor), Mr Hengki Kayame SH, MH (who was elected to office in May 2013), the head of the Paniai Mines Department and the vice Kapolres (deputy police commissioner for the regency) declared that it was the Regency?s intention to solve the issues of illegal mining and associated contraband activities. The Bupati publicly announced his support for the Company?s mining project which, he noted, as a lawful operation would generate royalties and other benefits for the local community.
Assurances were provided by the Bupati to the Company that it will not continue to experience interference as an expanded law enforcement presence will be permanently based on site. As part of this policy initiative the Bupati announced that a permanent police station would be constructed adjacent to the new airstrip at the site. Furthermore, all aircraft entering the site will be searched for contraband goods and any gold found in the possession of persons without a mining permit will be confiscated.
Whilst these public statements were welcomed by the Company, implementation on the ground is taking longer than was anticipated. The Company is in communication with the Bupati and Paniai Mines Department about its strategies and progress on implementing these policy initiatives. It appears the population at site has substantially reduced from what it was.
The Bupati continues to support the Company and is eager for the Company to commence its operations. West Wits has however made it clear that it must have comfort that the recently announced policies have been implemented prior to recommencing operations.
All equipment is at site in readiness to start an alluvial circuit. The Company has its mess and heavy machinery under protection of a security team, whilst the actions proposed by the Bupati are being implemented. Operating costs in Indonesia have been substantially reduced pending re-commencement of operations at Derewo.
Exploration
Exploration plans were delayed by management when the request to defer commencement of the alluvial circuit was implemented. It is the Company?s intention to recommence its exploration program once the alluvial circuit is operational.
Permitting
The Company continues to engage with the relevant departments and officers, for each of the three regencies in which its exploration permits are located, to ascertain when each Clean and Clear list will be registered with the central mines department in Jakarta. The Company has been unable to establish a precise timetable for release of the list although estimates for two of the three regencies are that this will occur in early 2014. West Wits has been recommended for approval by the local Regencies. It is anticipated that following receipt of Clear and Clean approvals forestry permits will be processed. The delays with the Clean and Clear list are affecting all rights holders in Papua. (end of excerpt)