Further exploration work at Nusantara’s (ASX: NUS) Awak Mas Gold Project in Indonesia has uncovered a number of potential high-grade feeder structures.

The structures were uncovered by a close spaced diamond drilling in the Tanjung geological domain – an area within the broader Awak Mas deposit which will be an initial open pit and major contributor to the company’s early mining schedule.

The close spaced drilling program provides Nusantara with additional data density for the company to delineate a maiden Measured Resource early next year.

In addition to the feeder structures, the works at Tanjung have found numerous broad intersections (some up to 37 metres) and individual high grades (up to 21 grams of gold per tonne in one area). Neil Whitaker, managing director of Nusantara, said “The drilling results from Tanjung are tremendous and further confirm our understanding on the mining geology”.

“Drilling has intersected more of the higher grade feeder structures that we see throughout the deposit”, he further added.

These findings were based on the first 54-holes of a broader close spaced drilling program that will cover several initial starter pits at Awak Mas, including the higher grade Salu Bulu satellite. 

The company expects to make further announcements in the lead up to it’s next Resource announcement early in the New Year.

Continued progress through 2020

These results come hot on the heels of an options exercise, which saw Nusantara’s major shareholder, and project partner, invest a further $5.8 million into the company and move to a 28% shareholding.  The move means Indika is now the largest shareholder of Nusantara.

Indika currently holds a 25% share of Nusantara’s subsidiary, Pt Masmindo Dwi Area, the project company to Awak Mas. Indika have the options to increase their stake in the project company to 40% following a further US$25 million investment.

These drilling and geophysics results mark the latest works in Nusantara’s ongoing exploration and development on the Awak Mas project. They follow the awarding of a front end engineering and design contract in March.

The contract was awarded to Indonesian firm PT Petrosea Tbk as part of Nusantara’s push towards production.

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Sources:

• Nusantara Announcement – 15 December 2020
• Nusantara keeps up Awak Mas gold project momentum with FEED contract award
• Indika has 25% equity participation in Awak Mas project