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The Bakan District contains a prospective, epithermal system located approximately 25 km west of the Company’s North Lanut gold mine on the same CoW. Drilling commenced at Bakan in 2005 and was completed in 2007. An internal pre-feasibility study completed shortly thereafter showed that the project was viable at a production rate of approximately 50,000 ounces per annum over a 4.5 year mine life and warranted a full feasibility study. Since then, delays to the permitting process have been encountered on account of areas of protected forest that overlap one of the two primary deposits. These permitting delays have meant that the start of construction is now likely to be pushed back to beyond 2010. The environmental impact assessment, known locally as an AMDAL, was approved in July 2007. The technical aspects of the project remain robust and the feasibility study remains close to completion, pending all permitting approvals. Meanwhile, limited cash resources are being spent on the project.
The table below shows
the JORC-compliant Mineral Resources at
Bakan, as quoted in the Company’s
2009 Annual Report.
| |
 |
| Mineral
Resources |
 |
| Measured |
 |
|
Indicated |
 |
| Measured
+ Indicated |
 |
| Inferred |
 |
| Resources
subtotal |
|
 |
| Gross |
 |
| Tonnes__ |
 |
| |
 |
| 5,420,000__ |
 |
| 4,899,000__ |
 |
| 10,319,000__ |
 |
| 6,555,000__ |
 |
| 16,874,000__ |
|
 |
Grade––
(g/t)–– |
 |
| |
 |
| 1.21__ |
 |
| 0.93__ |
 |
| 1.07__ |
 |
| 0.77__ |
 |
| 0.96__ |
|
 |
Contained––
Ounces–– |
 |
| |
 |
| 210,200__ |
 |
| 146,400__ |
 |
| 356,600__ |
 |
| 162,500__ |
 |
| 519,100__ |
|
|
 |
| Net
attributable (80%) |
 |
| Tonnes__ |
 |
| |
 |
| 4,336,000__ |
 |
| 3,919,200__ |
 |
| 8,255,200__ |
 |
| 35,244,000__ |
 |
| 13,499,200__ |
|
 |
Grade––
(g/t)–– |
 |
| |
 |
| 1.21__ |
 |
| 0.93__ |
 |
| 1.07__ |
 |
| 0.77__ |
 |
| 0.96__ |
|
 |
Contained––
Ounces–– |
 |
| |
 |
| 168,160__ |
 |
| 117,120__ |
 |
| 285,280__ |
 |
| 130,000__ |
 |
| 415,280__ |
|
|
 |
(Bakan’s Mineral
Resources are calculated at a cut-off grade
of 0.35 g/t Au for oxidised material,
0.5 g/t Au for transitional material, and
1.2 g/t Au for fresh material.)
The Doup project is located
in the Kotabunan district, North Sulawesi,
approximately 25 km north east of North
Lanut gold mine. The project is located in an area
that is free of restricted forest, which
removes a major impediment to its development.
Avocet has a 60% economic interest in the
project with 40% held by local shareholders.
The Doup project is divided
into five prospects, namely the Benteng,
Panang, Tungow, Tapabeken and Parabo prospects.
The Panag and Benteng prospects were explored
by Placer Dome in the 1980s. Placer Dome
estimated a grade-tonnage inventory of 17
Mt @ 2.15 g/t for 1.2 Moz of gold, although
this figure was never officially reported.
In February 2009 Avocet
announced an Inferred Mineral Resource of
1.0 million ounces at Doup based on 11,288
m of diamond and reverse circulation drilling
undertaken in 2007 and 2008. The table below
shows the presently defined resource at
Doup, which includes the Panang and Benteng
prospects.
| |
 |
| Mineral
Resources |
 |
 |
 |
 |
| Inferred
(Benteng) |
 |
| Inferred
(Panang) |
 |
| Resources
subtotal |
|
 |
| Gross |
 |
| Tonnes__ |
 |
| |
 |
 |
 |
 |
| 11,590,000__ |
 |
| 13,430,000__ |
 |
| 25,020,000__ |
|
 |
Grade––
(g/t)–– |
 |
| |
 |
 |
 |
 |
| 1.30__ |
 |
| 1.10__ |
 |
| 1.20__ |
|
 |
Contained––
Ounces–– |
 |
| |
 |
 |
 |
 |
| 489,400__ |
 |
| 476,900__ |
 |
| 966,300__ |
|
|
 |
| Net
attributable (60%) |
 |
| Tonnes__ |
 |
| |
 |
 |
 |
 |
| 6,954,000__ |
 |
| 8,058,000__ |
 |
| 15,012,000__ |
|
 |
Grade––
(g/t)–– |
 |
| |
 |
 |
 |
 |
| 1.30__ |
 |
| 1.10__ |
 |
| 1.20__ |
|
 |
Contained––
Ounces–– |
 |
| |
 |
 |
 |
 |
| 293,640__ |
 |
| 286,140__ |
 |
| 579,780__ |
|
|
 |
(Doup’s Mineral
Resources are calculated at a cut-off grade
of 0.5 g/t Au)
Avocet is currently undertaking
metallurgical test work on 2.8 tonnes of
samples from Benteng and Panang. In-fill
drilling to 25 metre centres is scheduled
to commence once metallurgical investigations
are complete with the aim of defining Measured
and Indicated Mineral Resources to JORC
Code standard. Following Indonesia’s transition from the older KP-based permit system, to the new IUP-system, Avocet has now acquired the necessary IUPs for Doup.
Successful due diligence was completed on the Seruyung project, located in Kalimantan, in 2008. Following this due diligence period, an IP survey commenced in early 2009. Thirteen lines totalling 14,500 m in length were completed. Geological mapping and sampling continued at Ada Isut, Dulun and Block 2, while partial leach soil sampling was completed at Dulun. A drill programme was commissioned with the objective of testing and expanding the resource that previous operators, both Canadian listed, have quoted as being in excess of 300,000 ounces of gold. Avocet can earn up to an 80% interest at Seruyung based on the level of expenditure.
The drill programme at
Seruyung was completed in February 2009
with a total of 14 holes for 1,970 m drilled.
Metallurgical
sampling has been completed and the samples have since been dispatched
from site to Penjom, where testing is ongoing.
As with Doup above, Avocet has successfully transferred all licences at Seruyung over to the new IUP-system of permits.
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