Resources & Reserves
Asset Quality – World Class Resource
The Company via wholly owned subsidiary, PT BSI, owns the Mining Business License (IUP) for Operation and Production for the Tujuh Bukit Project and covers an area of 4,998 hectares. The IUP for Operation and Production is valid for an initial 20 (twenty) years and is extend-able by way of 2 (two) distinct 10 (ten) year options.
A wholly owned subsidiary of PT BSI, namely PT Damai Suksesindo, holds an adjoining IUP Exploration covering an area of 6,558.46 hectares.
The Tujuh Bukit Project consists of 2 (two) distinct mining development opportunities: firstly, the low capital cost, low operating cost and low technical risk Heap Leach Project, which entered the production at the beginning of 2017; and secondly, the future potential development of the world class Porphyry Project subject to the successful coupletion of required technical, environmental and social studies.
Resource Consolidated Mineral Resources and Ore Reserves Statement as of 31 December 2017
PT Merdeka Copper Gold Tbk reports Mineral Resources and Ore Reserves as of 31 December each year. (Please find the document within our ‘Downloadable Document’ website feature)
As of 31 December 2017, the Heap Leach Oxide Project Mineral Resources are 106 Mt at 0.73 g/t gold and 24 g/t silver containing 2.5 Moz of gold and 80 Moz of silver as shown in Table 1. Mineral Resources are inclusive of the Ore Reserves.
As of 31 December 2017, the underground Copper Porphyry Project Mineral Resources are 1.9 Bt at 0.45% copper and 0.45 g/t gold containing 19 Blbs of copper of the Resources and Reserves and 28.1 Moz of gold as shown in Table 2. An exploration decline is currently being constructed to act a drilling platform for additional drilling of this deposit. There is no change this year to the Copper Porphyry Project Mineral Resources.
As of 31 December 2017, Merdeka Group Ore Reserves are 48 Mt at 0.90 g/t gold and 26 g/t silver containing 1.4 Moz of gold and 40 Moz of silver as shown in Table 3. This is a 12 Mt increase in ore tonnes and an increase of 191 koz of contained gold after mining depletion.
The Ore Reserves do not include the heap leach pad working inventory of 3 Mt at 0.72 g/t gold and 8 g/t silver containing 0.07 Moz of gold and 0.8 Moz of silver. The heap leach pad is considered to be a working inventory because the active ore placement lift has a planned 150 day leach cycle to realize 100% of the estimated total recovery. In addition to this planned leach cycle, there is potential for additional recovery of metal as the leach solution percolates through the underlying lifts. This potential additional recovery is not quantified or included within metal recovery or economic estimates.
The changes in Heap Leach Oxide Project Mineral Resources relative to 31 December 2016 without mining depletion are shown in Table 4. The primary reason for change is an updated Mineral Resource to incorporate additional drilling within Pit B West, Pit A and Pit C. Observations from grade control pit mapping and blast hole assays were used to better inform interpretations of grade domains for grade estimation by kriging.
The changes in Heap Leach Oxide Project Ore Reserves relative to 31 December 2016 are shown in Table 5 of the Resources and Reserves Statement. The primary reasons for changes are a new mineral resource model for Pit B West, Pit A and Pit C that was updated to incorporate new drilling during 2017 and revised pit design changes resulting from the Oxide Expansion Project (OXP) applied to the new resource model. This work was completed to a Pre-Feasibility Study (PFS) standard by CSA Global and Whittle Consulting. The OXP investigated new production scenarios based on increased plant throughput (4.0 Mtpa to 6.0 Mtpa), updated parameters, revised costings and several new initiatives. The results from the OXP were compiled in a report prepared in September 2017.
Resources and ReservesDownload
Competent Person Statement - Robert Spiers - Updated Mineral Resource StatementDownload
Competent Person Statement - Robert Spiers - Annual Mineral Resource Statement - PorphyryDownload
Consolidated Mineral Resources and Ore Reserves Statement as of 31 December 2017Download
Competent Person Statement - Paul O'Callaghan - Ore Reserves as of 31 December 2017Download