Nusantara: Grid power supply secured for Awak Mas gold project

By Romel S. Gurky

ASX-listed Nusantara Resources Limited said it had entered into a non-binding MoU with Indonesia?s state-owned power utility PT PLN for the provision of grid power to the Awak Mas gold project in South Sulawesi Province

The company said in a statement on Tuesday that the MoU covers interim power to existing facilities and proposed construction facilities; and long-term, low cost power, via a high voltage connection of approximately 35km to be constructed in time for commissioning of the proposed mining project, subject to the execution of a final agreement by June 2018.

At the date of this report, PLN were mobilizing engineering teams to site to install the interim power arrangements, the statement said.

Nusantara is a gold development company with its flagship project comprising the 1.74 million ounce Awak Mas Gold Project located in Sulawesi. Discovered in 1988, the project has had some 124km of drilling completed in over 1,000 holes. The Project is currently 100 percent-owned in a 7th Generation Contract of Work (CoW) with the Indonesian Government.

Nusantara?s development strategy is for a large-scale, low strip ratio open pit operation with ore to be processed by conventional flotation and cyanide leaching. Environmental approval has already been received for the project, which is favorably located in non-forestry land close to established roads, ports and grid power, enabling the Project to quickly advance towards development upon completion of the Definitive Feasibility Study (DFS) by mid to late 2018.

Nusantara?s second strategy is to grow the resource base and sustain a mining operation beyond the initial targeted life of 10 years. Multiple drill-ready targets have already been outlined extending from the three main deposits and in other areas of the 140km2 CoW.

Editing by Reiner Simanjuntak