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Talang Santo Mine

The discovery of Talang Santo in June 2011 was an exciting milestone achieved by the Company and work quickly commenced to advance its development. Talang Santo is located within a major cluster of epithermal veining and is located 17km by an established all weather haul road from the Way Linggo processing plant.

Phase 1 of the current mine plan will see 6 levels established at 50m spacing. 3 Levels have already been developed with preparations to extend an internal shaft providing access and ore haulage to the 4 Level now complete. Installation of the infrastructure to provide for up to 500tpd hoist capacity from the 3 Level is also in place.

The Company recently completed the final steps in the regulatory process in Indonesia and the Talang Santo mine is now fully permitted and currently transitioning to full production. The mineralized system in and around the Talang Santo mine is shaping up to be a significantly larger mineralised system than previously seen elsewhere in the Project area, with the ore body remaining open at depth and mineralization continuing along strike. Gold grades from initial mine development  have exceeded resource  modelling, largely due to the style of the ore body which contains low-sulphidation epithermal fissures and veins within a zone of intense argillic alteration. Very fine clays are present, containing high to very high grades of gold and silver. In addition, the grade from recent mill trials indicate a significant grade uplift from drilling and resource modelling. Both of these factors supports the anticipated upside in the range of gold grades likely to be encountered when stoping commences.

Mineralisation at Talang Santo has been proven in multiple orientations, with recent development work confirming the existence of a second ore body called the Splay vein. The Splay vein was previously interpreted from limited surface drill intercepts in the initial Talang Santo geological model however was not including in any mining inventory.

Development on the Splay Vein to date confirms mineralization along strike of 183 metres and remains open.

High grade assays (uncut) returned from Spay Vein face sampling include:

  • 2.6m @ 110.0 g/t Au & 188 g/t Ag;
  • 2.6m @ 79.7 g/t Au & 204 g/t Ag;
  • 2.1m @ 60.9 g/t Au & 125 g/t Ag;
  • 2.4m @ 63.2 g/t Au & 61 g/t Ag; and
  • 2.6m @ 25.5 g/t Au & 46 Ag.

Development has highlighted the existence of two distinct zones within the mineralized corridor of the Splay vein. The main mineralised zone of the Splay vein (Zone A) consists of a vein averaging 2 metres wide, strike of 113 metres and a length weighted average grade (uncut) of 27.60 g/t Au and 95.9 g/t Ag. Beyond Zone A, a fault intersected the ore body with a minor offset into a narrower high grade zone (Zone B). Zone B is a narrower vein, averaging 0.5 metres wide over the current strike of 66m at 14.78 g/t Au and 23.8 g/t Ag. It is anticipated that Zone B is still capable of being bulked to allow stoping.

The Company is now establishing trial stoping in both the A and B Zones from the 3 Level up. This work will enable the evaluation of mining factors such as dilution, mining recovery and the effect of higher grade outlier assays on the mined grade for use in future resource updates.

The Company is also undertaking a comprehensive review of the Talang Santo drillhole data set prior to undertaking an infill drilling program to assist with further evaluation of the extent of the Splay vein and to test additional targets with the aim of expanding the current resource base.