GOLD MINE
LOCATION MAP OF GOLD MINE LOT
CURRENT STATUS OF EXPLORATION PERMITS
A. Location
1. South Ibu and Jailolo, West Halmahera, North Maluku, Indonesia
B. Exploration Permit
1. Permit Holder : PT. ORO KNI CO., LTD.
2. Acquisition Date : April 30, 2007
3. KP was changed to IUP in August 30, 2010
C. General Survey Permit
1. Permit Holder : PT. ORO KNI CO., LTD.
2. Mineral Item : All Minerals
3. Acquisition Date : April 30, 2007
4. Mining Concession : Entire West Halmahera Area
D. Overview of Gold Exploration Permit Site
GEOLOGY AND ORE DEPOSIT
A. Geological Features
Upper Miocene, the Tertiary Period of the Cenozoic Era: Sedimentation of Gosowong Formation
B. Ore Deposit
Low sulfidation epithermal gold deposit
GRADE AND RESERVES IN SABETA GOLD MINE
A. Grade
- Average grade: Au 5.4g/t
- Vein width: 15m
- Length: 1,200m
B. Reserves
- Possible Au Reserves: 8,350,000 ton
- Possible Metal Reserves: 45.09 ton
CURRENT STATUS OF EXPLORATION
- Started independent gold exploration activities since February, 2007
- Detected a large amount of gold by amalgamation at the midstream of Ake Lame, based on the placer survey and confirmed a large gold ore body whose vein is 50~70 meters wide, over 1,250 meters long and contains high grade gold of 1.9~5.4g/t in the western region (Ake Sabeta) of PT. Nusa Halmahera Minerals (that is, the eastern region of our gold mining concession).
- Conducted geological deposit survey over the entire gold mine site by 2 internal and 3 external geologists. Specifically, in terms of regional geological survey, regional geochemical survey (stream sediment, heavy mineral & float rock samples) and basic surface geological survey were carried out. And then in terms of detailed geological survey, detailed geochemical survey (soil samples) and detailed surface geological survey were performed on the potential areas according to the related survey result.
- Based on the detailed geochemical survey, 2 Au anomaly zones and 10 anomaly points in Tarusi area and 5 anomaly points in Donghar area were found.
- A large gold ore body was detected(vein width: 15m, average grade: 5.4g/t, length: 1,200m) through detailed surface geological survey. This is a low sulfidation epithermal gold deposit with the reserves of 8,350,000 tons (ore) and 45.09 tons (metal).
- Pre-investment survey for overseas development of mineral resources was conducted by KORES.
EXPLORATION RESULT
- GEOLOGICAL DEPOSIT SURVEY REPORT ON GOLD MINE OF PT. ORO KNI IN WEST HALMAHERA, INDONEIA:
BUSINESS PROSPECTS
1. The international gold price is around US$1,875/oz and is been stable throughout this year. However, the increasing trend is expected to reemerge against the background of quantitative easing and its possible inflationary effect in the world market.
2. In our mine's eastern district, PT. Nusa Halmahera Minerals (NHM), owned by Australian New Crest Ltd., has produced around 9 tons of gold yearly since 1999 and we have found a large gold ore body with very similar geological features, compared to that of NHM. Judging from the survey result, we are expected to develop a large gold mine on the outskirts of NHM's mine.
3. If we succeed in developing our gold mining concession, we believe that the prospects for further development will be bright, owing to the increase of international gold price along with the high demand for gold.