Nusantara Resources Limited
Nusantara Resources Limited
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Nusantara is forecasting increased upfront capital costs of $US233M based on studies for an updated DFS on its 75%-owned Awak Mas gold project in Sulawesi, Indonesia. Its previous DFS addendum in June 2020 estimated capital costs at $517M.
The increases reflect a new mine plan and schedule, increased earthworks and land access costs, higher plant specs, engineering detail and a switch to an EPC contracting strategy.
Indonesian-focused Nusantara Resources plans to release an updated economic assessment next month on its 75%-owned Awak Mas project in Sulawesi after posting its maiden proved and probable openpit ore reserve of 1.45Moz gold (33Mt @ 1.37g/t). Total proved reserves are 0.15Moz.
The global reserve takes into account a close-spaced drilling program at the initial mining area at the Awak Mas and Salu Bulo deposits.
The success of a close-spaced drilling program at the satellite Salu Bulo deposit has enabled Australian-based developer Nusantara Resources to increase total mineral resources at its 100%-owned Awak Mas project in Sulawesi, Indonesia to 2.29Moz gold (50.6Mt @ 1.41g/t).
Salu Bulo, with its updated measured, indicated and inferred resource of 190,000oz (3Mt @ 1.95g/t), is 2km from the main Awak Mas deposit and slated to be its high-grade starter pit.
Independent directors of Australian-based Nusantara Resources are recommending shareholders accept the $A80M takeover bid from Indonesian integrated energy giant PT Indika Energy, its 28% shareholder and 25% JV partner in the Awak Mas gold project in Sulawesi.
The offer of 35c for each of the shares it does not already own represents a 21% premium to Nusantara’s 30-day weighted average. It’s backed by shareholders representing nearly 27%, including 21.77% holder Lion Selection Group.
Nusantara Resources MD Neil Whitaker says a revised economic assessment that followed a 34% increase in ore reserves this month has presented a compelling case for its current talks on a combination project debt, mezzanine finance and equity investment for the development of the Awak Mas gold project in South Sulawesi, Indonesia.
Significant growth in reserves have enabled Nusantara Resources to forecast higher initial production and extended mine life as it continues development funding discussions for its 100%-owned Awak Mas gold project in South Sulawesi, Indonesia.
Developer Nusantara Resources has lifted annual production and mine life forecasts for its 100%-owned Awak Mas gold project in S Sulawesi, Indonesia after posting a 34% increase in ore reserves to 1.53Moz, from 1.14Moz at the time of its Oct 2018 DFS.
Australian-based Nusantara says the new probable reserve estimate of 35.6Mt @ 1.33g/t, from 26.9Mt @ 1.32g/t, is backed by exploration success, updated openpit mine planning and higher gold prices.
Nusantara Resources has awarded an $US11.45M front end engineering and design contract for its proposed 2Moz Awak Mas gold project in South Sulawesi, Indonesia to PT Petrosea, the engineering and construction contractor subsidiary of Nusantara's shareholder-strategic partner Indika Energy.
Australian-based Nusantara aims to start construction and commissioning of the forecast $162M capex development in 2021.
Nusantara Resources is confident it has established a clear project funding pathway for its 100%-owned Awak Mas gold project in Indonesia’s South Sulawesi province through a $US80M non-binding term sheet with strategic partner and shareholder PT Indika Energy.
Indika will invest up to $40M for 40% of project company PT Masmindo while mining, engineering and construction arm Petrosea will offer $40M deferred payment terms for the project’s FEED and EPC contracts.
Gold developer Nusantara Resources has gone for local knowledge with the appointment of Neil Whitaker as CEO as it targets a 2020 development start on its proposed 100,000ozpa flagship Awak Mas gold project in South Sulawesi, Indonesia.
Whitaker’s 40-year mining sector history includes operating and senior executive roles with Anglo American, Western Mining, Clough Indonesia and Newcrest Mining. He was also COO for PT Petrosea Tbk, a subsidiary of Awak Mas partner PT Indika Energy.