Augur completes scoping study on Radu Kuning deposit, Indonesia

12 March 2014 (Last Updated March 12th, 2014 18:30)

A scoping study by Augur Resources has indicated that its Radu Kuning deposit, located within the Wonogiri project in Indonesia, could deliver a net cashflow of $143m.

A scoping study by Augur Resources has indicated that its Radu Kuning deposit, located within the Wonogiri project in Indonesia, could deliver a net cashflow of $143m.

The scoping study found that an open cut operation could deliver between 1.74 million to two million tonnes (Mt) of ore a year, over a mine life of about nine years.

Life of mine production is estimated at 283,000oz of gold and 236,000t of copper concentrate, or 426,000oz of gold equivalent.

The project currently has a resource estimate of 90.9Mt, grading at 0.35g per tonne of gold and 0.10% copper.

"Radu Kuning deposit will require a capital expenditure of $56m to construct a second-hand plant and associated infrastructure."

The scoping study revealed that the Radu Kuning deposit will require a capital expenditure of $56m to construct a second-hand plant and associated infrastructure.

Australian Mine Design and Development carried out the scoping study with input on the mineralisation, metallurgy and costings from several Australian and Indonesian firms, as well as Augur employees.

Augur said that based on the positive scoping study, it plans to continue its exploration activities at Wonogiri to define further economic mineralisation at both Radu Kuning and the surrounding epithermal targets.

The company has started an active exploration programme and will commence a drill programme targeting extensions of the known mineralisation and more regional areas.

Australian resource development firm Augur has a focus on gold and copper in Indonesia, and nickel projects in Eastern Australia.

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