Name of the Project
Awak Mas gold project.

Location
The project is located in South Sulawesi, Indonesia.

Client
Nusantara Resources.

Project Description
Awka Mas is one of a few undeveloped gold projects within the Asia-Pacific region.

A definitive feasibility study has confirmed the project’s technical and financial feasibility, with opportunities to increase project value through optimising the current mineral resources and through further exploration.

The project has an ore reserve of 1.1-million ounces within a 2-million-ounce mineral resource. The mining operation will include two openpit mines, with an initial 11-year life, and a low project strip ratio of 3.5.

Potential Job Creation
Not stated.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of $210-million and an internal rate of return of 24.4%, with a payback after tax of four years.

Value
The project is expected to cost about $145.5-million to implement.

Duration
Not stated.

Latest Developments
The shareholders of Nusantara will gather in April to vote on a $40-million project equity deal with strategic partner Indika Group to develop the project.

Nusantara signed a nonbinding termsheet with Indika in December 2019 that would result in the project partner’s gaining an eventual 40% interest in the gold project.

The first stage of investment will result in Indika’s contributing $15-million in funding for an initial 25% interest in Awak Mas, while a second stage funding of $25-million will secure a further 15% interest.

Nusantara has reported that early capital predevelopment activities at Awak Mas have started, while the front-end engineering and design (FEED) contract negotiations are advancing.

The award of the FEED contract is a condition of the Stage 1 investment, and Nusantara expects the contract to be awarded in the first quarter of this year.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Nusantara, tel +61 8 9460 8600 or email info@nusantararesources.com.