Newcrest gets four mining concessions in Indonesia
Newcrest gets four mining concessions in Indonesia
MELBOURNE (Reuter): Newcrest Mining Ltd. said yesterday the three sixth generation contracts of work for gold exploration it signed in Jakarta on Monday brought to four its mining concessions in Indonesia.
The three new concessions are located in Halmahera, East Sumbawa and West Sumatra and the existing one in North Sulawesi, Newcrest added.
It said the signing of these contracts meant that Newcrest had firm title to a total of 34,700 sq km of geologically promising magmatic arcs.
"These arcs are known to host some of the largest porphyry gold/copper and epithermal gold deposits in SE Asia, including Ok Tedi, Grosberg, Batu Hijau, Gunung Pongkor and Porgera," the company said. Newcrest has Indonesian partners in all areas.
At Halmahera (17,000 sq km) PT Aneka Tambang, the Indonesian state-owned mining company, has a 10 percent interest with the right to purchase on additional 7.5 percent on commercial terms.
In East Sumbawa (3,000 sq km) and in West Sumatra (6,000 sq km) PT Austindo Mining Corporation (PT AMC), a company wholly owned by the Tahija family, has a 10 percent interest.
In North Sulawesi (8,700 sq km), 5th generation CoW, the company also has a joint venture with PT AMC (10 percent) and in certain more copper-prospective areas Cyprus Amax Minerals Co is earning a 45 percent interest from Newcrest.
In Halmahera, at Gosowong, Newcrest and its JV partner have already discovered a high grade resource of one million tons.
This resource is situated only eight kilometers from the coast near a disused timber track at an altitude of 250 metres above sea level, Newcrest said.
Engineering scoping studies have been carried out and the signing of the CoW should allow the timely progress to a full feasibility study, the company said.
"Scoping work carried out to date indicates a mine with a treatment rate of about 200,000 tons per annum producing an average of 150,000 ounces of gold per annum over an initial four year mine life," it said.
In Jakarta, PT Timah announced that its affiliated company PT Kutaraja Tembaga Raya (KTR) was one of 65 contractors awarded the CoWs on Monday.
The CoW for PT KTR, which is 75 percent owned by Phelps Dodge Australia and 25 percent owned by PT Timah, covers three block areas of 562,560 hectares in regencies of Aceh Tengah and Pidie in Aceh province for exploration and mining of fold and its associated minerals.
Timah and Phelps, which received preliminary survey permits in January, this year, had conducted airborne and ground surveys since than, the company said in a statement.
Timah, which is listed on Jakarta, Surabaya and London stock exchanges, said that the result of the preliminary survey had been very encouraging and the joint venture company was ready to start further exploration programs.