- Junior explorer Nusantara Resources (NUS) has upgraded the ore reserve estimate of its Awak Mas Gold Project in Indonesia
- The ore reserve has been bumped up by 34 per cent to 35.6 million tonnes grading 1.33 grams per tonne of gold for 1.53 million ounces
- Along with the ore reserve upgrade, the company has increased the expected life of the mine to 16 years
- As part of a new mine schedule, Nusantara says it will be prioritising higher-grade gold for the first four years of production
- Today’s ore reserve upgrade comes less than two months after the project’s mineral resource estimate was increased by 18 per cent
- Shares in Nusantara are trading over six per cent higher this afternoon, currently worth 35 cents each
Less than two months after upgrading the Awak Mas Gold Project mineral resource, Nusantara Resources (NUS) has upgraded the project’s ore reserves.
The junior gold explorer revealed today that the Indonesian project’s JORC-compliant ore reserve estimate now sits at 35.6 million tonnes with an average grade of 1.33 grams per tonne of gold for 1.53 million ounces.
This is a 34 per cent increase to the previous estimate of 26.9 million tonnes at 1.32 grams per tonne of gold for 1.14 million ounces.
It is important to note that 100 per cent of the reserves are in the midpoint confidence ‘probable’ category — meaning they are likely to be viable for commercial production but not guaranteed.
The new ore reserves are based on information from the updated mineral resource estimate from April, as well as an October 2018 definitive feasibility study and metallurgical test work from 2019.
Importantly. Nusantara said it expects to keep growing both the mineral resources and ore reserves from Awak Mas, with significant exploration potential still to be tested. Currently, Nusantara is prioritising testing extensions of the Salu Bulo deposit in the project area.
With the upgraded ore reserves, the company has increased the expected mine life of the project from 11 years to 16 years, predicting a 2.5 million-tonne-per-year ore processing rate.
A mine schedule has now been outlined, with Nusantara planning to prioritise higher-grade gold for the first four years of production. The company is expecting the project to produce between 110,000 ounces and 140,000 ounces of gold per year for the first four full years.
Nusantara Managing Director Neil Whitaker said the updated ore reserve represents a step-change for the Awak Mas project.
“The improved production profile and extended mine life provide an outstanding base to enhance value as we progress current development funding work,” Neil said.
Investors have taken well to today’s news, with Nusantara shares trading 6.06 per cent higher in late-session trade, currently worth 35 cents each.