Operation


Resources & Reserves

Asset Quality – World Class Resource
The Company via wholly owned subsidiary, PT BSI, owns the Mining Business License (IUP) for Operation and Production for the Tujuh Bukit Project and covers an area of 4,998 hectares. The IUP for Operation and Production is valid for an initial 20 (twenty) years and is extend-able by way of 2 (two) distinct 10 (ten) year options. A wholly owned subsidiary of PT BSI, namely PT Damai Suksesindo, holds an adjoining IUP Exploration covering an area of 6,558.46 hectares. The Tujuh Bukit Project consists of 2 (two) distinct mining development opportunities: firstly, the low capital cost, low operating cost and low technical risk Heap Leach Project, which has entered the production operation stage by the beginning of 2017; and secondly, the future potential development of the world class Porphyry Project subject the requisite technical, environmental and social studies.

CSA Global Pty. Ltd, March 2017

Heap Leach Project Ore Reserve Estimates
A JORC Code (2012 Edition) compliant Ore Reserve of 36.0 Mt at 1.03 g/t Au has been estimated with Proved ore being 29.4 Mt at 1.09 g/t Au and Probable ore being 6.6 Mt at 0.76 g/t Au as shown in the following table. Mineral Resources are shown in subsequent tables.

 

JORC Category

Tonnes (Mt)

Gold Grade
(Au g/t)

Content Metal
(Au Moz)

December 2016

Proved

29

1.09

1.03

 

Probable

7

0.76

0.16

TOTAL

36

1.03

1.19

October 2016

Proved

28

0.96

0.85

 

Probable

8

0.75

0.20

TOTAL

36

0.91

1.05

Variant %

Proved

7%

14%

21%

 

Probable

(20%)

1%

(19%)

TOTAL

1%

13%

14%


The Ore Reserve statement is supported by: PT BSI Tujuh Bukit Gold Heap Leach Project DFS, May 2014, PT BSI Tujuh Bukit Heap Leach Gold Project Optimization Study, May 2015 and subsequent pit optimizations and metallurgical reports. Notes of particular importance are:

  1. Resource models have been prepared by Spires Geological Consultants.
  2. A fixed gold price of US$1,200/oz used for the life of mine and a fixed silver price of US$17/oz for the life of mine as advised by PT BSI.
  3. Discount rate used of 8%.
  4. Mining dilution and mining recovery estimated as 5% and 95% respectively, appropriate for the style of deposit, proposed mining method and mining fleet.
  5. Metallurgical processing recoveries have been estimated at Au 78.9% and Ag 11.1% (inclusive of gold recovery circuit, and smelting losses) over a 150 day field leach cycle of crushed and agglomerated ore P100 of 75 mm, based on the results of test work undertaken by KCAA, Ammtec and others, as reported in the Optimization study and the Addendum’s to Section 9, Metallurgical Basis for Heap Leach Design and Operation – Note on Updated Process Approach, September 2015.
  6. Mining assumptions and cost estimates are as advised by PT BSI, based on mining contract quotations and mineral processing cost estimations by consultants.
  7. Economic cut-off grade of Au 0.24 g/t applied for oxide and Au 0.37 g/t applied for transitional, with no allowance for silver contribution.
  8. Pit optimizations have been undertaken by Mr Paul O’Callaghan of CSA Global.
  9. Mine designs have been prepared by Mr Paul O’Callaghan of CSA Global, based on the optimization results. 
  10. Mine designs have been reviewed by Mr Paul O’Callaghan of CSA Global and compared to the optimization results.
  11. Process designs have been undertaken by Knight Piesold Pty. Ltd.
  12. Financial modeling has been prepared by PT BSI.
  13. The Mineral Resources classified as Measured within the designed pit have been converted to Proved Ore Reserves due to the level of study completed, including the identification and assessment of the risks associated with the Project.


Heap Leach Project Resource Estimates

Spiers Geological Consultants, Jan 2017

The near surface mineral resources, inclusive of the open pit ore reserves, are shown below. The underground porphyry mineral resources are shown in the subsequent table.

 

JORC Category

Tonnes (Mt)

Gold Grade
(Au g/t)

Content Metal
(Au Moz)

December 2016

Measured

49

0.96

1.52

 

Indicated

31

0.57

0.57

 

Inferred

19

0.59

0.36

TOTAL

99

0.77

2.45

February 2015

Measured

42

0.93

1.27

 

Indicated

29

0.61

0.57

 

Inferred

18

0.65

0.37

TOTAL

89

0.77

2.21

Variant %

Measured

16%

3%

20%

 

Indicated

7%

(7%)

-

 

Inferred

6%

(8%)

(3%)

TOTAL

1%

-

11%

 

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