Name of the Project
Awak Mas gold project.

Location
The project is located in South Sulawesi, Indonesia.

Project Owner/s
Nusantara Resources.

Project Description
A definitive feasibility study (DFS) addendum has shown a significant improvement in Awak Mas’ economic assessment, following the release of the updated mineral resource estimate in April 2020 and updated ore reserve estimate in June 2020. The economic assessment is based on a DFS completed in October 2018.

Awak Mas has a mineral ore reserve of 35.6-million tonnes grading 1.33 g/t gold, with in a 2.35-million ounce mineral resource.

The mining schedule targets the Awak Mas (main) and Salu Bulo deposits, with an initial 16-year life up from 11 years in the 2018 DFS.

A staged mining approach is planned to maximise gold grade and reduce strip ratio in the first four years of the production profile.

The processing plant throughput has remained the same,  at 2.5-million tonnes a year.

Gold produced over the life-of-mine (LoM) has increased from 1.07-million ounces in the 2018 DFS to 1.53-million ounces in the DFS addendum.

Average gold production over the LoM is estimated at 96 600 oz/y in the DFS addendum, up from 94 800 oz/y in the 2018 DFS.

Potential Job Creation
Not stated.
 

Net Present Value/Internal Rate of Return
The project’s pre-tax net present value, at an ungeared 5%, has increased from $210-million in the 2018 DFS to $654-million in the DFS addendum, while the internal rate of return has increased from 24% to 52%.

Project payback has decreased from 48 months in the 2018 DFS to 21 months in the DFS addendum.

Capital Expenditure
Upfront capital has increased from $146-million in the 2018 DFS to $156-million in the DFS addendum.

Planned Start/End Date
Not stated.

Latest Developments
The DFS addendum has provided the basis for debt financing.

SRK Consulting has been appointed to undertake the independent technical expert report for the future banking syndicate. This assessment will form the basis of an approach to a select group of international banks that have expressed an interest in financing the Awak Mas project.

Key Contracts, Suppliers and Consultants
SRK Consulting (independent technical expert report).

Contact Details for Project Information
Nusantara Resources investor contact David Waterhouse, tel +61 407 880 93.