Pani Gold Project is a gold mine located in Pohuwato Regency, Gorontalo Province.

On 6th January 2020, Merdeka announced that MDKA and PT J Resources Asia Pasifik Tbk (“PSAB”) had executed a series of inter-conditional transaction documents (together, “Pani Joint Venture”) in relation to MDKA’s Pani Mining IUP (“Pani IUP”) and one of the three mining blocks, that is Pani block (“Pani Project”) within PT Gorontalo Sejahtera Mining’s (“GSM”) Contract of Work (“GSM COW”). GSM is a subsidiary of PSAB.

Through its 66.7% ownership of PT Pani Bersama Jaya (“PBJ”), MDKA controls the Pani IUP in Gorontalo Province, Sulawesi. Through its 99.999% ownership of PT J Resources Nusantara (“JRN”), PSAB controls a 100% interest in the Pani Project located in Gorontalo Province, Sulawesi. The Pani IUP and the Pani Project are located adjacent to each other in Gorontalo.

One Asia Resources Limited has previously reported that the Pani IUP contains mineral resources of 89.5 million tonnes at a gold grade of 0.82 g/t for 2.37 million ounces of gold and PSAB has previously reported that the Pani Project contains a mineral resource of 72.7 million tonnes at a gold grade of 0.98 g/t for 2.3 million ounces of gold.

Until recently, both MDKA and PSAB had intended to develop separate projects at the Pani IUP and the Pani Project, respectively. Reserves for both projects would have been constrained by the need to maintain pit walls within the respective tenements. By combining the projects into one project, the overall reserves are likely to be materially larger than the likely reserves would have been if the projects were developed separately.

MDKA and PSAB have concluded that there is a significant logic in combining the Pani IUP and the Pani Project, in order to develop one, larger gold mine project. Combining both projects is expected to optimise the development of the combined resources. One combined project will provide significant economies of scale with ore processed through one larger process plant.

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