Nusantara Resources Collaborative Team, Enhanced Geological Understanding
Nusantara Resources has 100% ownership of the Awak Mas gold project in Indonesia. The company is aiming to complete a Definitive Feasibility Study by mid-2018, leading to an investment decision for development expected in late 2018.
The Awak Mas Project has been the focus of intensive modern-day exploration since the discovery of the deposit in 1991, by a succession of international exploration and mining companies, with over 130,000m of drilling completed. Nusantara Resources has a specific challenge – to produce a feasibility study that demonstrates the Awak Mas project as being robust and economically exploitable.
At the end of 2016, prior to IPO, there was a requirement for Nusantara Resources to start from scratch with a new approach to the geological interpretation. Previous property holders had interpreted the deposit as being of mesothermal origin, but Colin McMillan, Nusantara’s GM of Geology was not convinced and believed the deposit required fresh eyes and more up-to-date techniques to unlock the full potential of Awak Mas.
There was a large amount of non-digital data pertaining to the project, plus there was the requirement for a restructure of the geological database prior to commencing a reinterpretation of the geology.
In late 2016, Nusantara engaged Cube Consulting to complete a detailed review of previous data, test work and studies with a view to seeing the Awak Mas project from a fresh point of view. Colin McMillan had been aware of Cube and its reputation and was confident that the company had the skills to work closely with him in challenging the traditional views of Awak Mas.
Colin McMillan, along with Adrian Shepherd and Ted Hansen from Cube Consulting, began the task of constructing the next chapter in the Awak Mas geological story. Once the database was cleaned up by Cube, Colin had a solid foundation to re-build the geology model with Cube using LeapFrog software. This allowed rapid modelling and demonstration of various ideas as the thinking evolved.
The biggest revelation was the understanding of the sub-vertical structural control on the mineralisation. It had been previously recognised, and after a site visit and re-logging of core, Colin and Adrian concurred with recent, independent interpretation that the deposit was in fact epithermal in nature and that these sub-vertical structures represented a significant, if not the main mineralising event. This theory was borne out when a 10,000m drilling campaign in 2017 demonstrated that the model was sound, with contacts and mineralisation being intercepted as predicted – the team had created a robust and convincing geological story.
Once the geological model was updated, the Mineral Resource was re-estimated by Cube, based on the new interpretation. In August 2017, Nusantara Resources was successfully launched on the Australian Stock Exchange with the updated model and Mineral Resources at Awak Mas Gold Project being the primary asset. Since the IPO, the company has been working on a Definitive Feasibility Study, using Cube Consulting to update the Mineral Resource Estimate as drilling continues.
Cube Consulting provided a Perth base for the Nusantara team prior to listing, offering office space as well as technical assistance.
Depth of knowledge and operational experience within Cube created a great collaborative team when combined with the knowledge and ideas of Colin McMillan from Nusantara.