J Resources Ensures Economical New Gold Prospect is Developed

Author: Egenius Soda - November 11, 2024

Jakarta, TAMBANG,-The national gold mining company, PT J Resources Asia Pasifik, Tbk (PSAB) again delivered positive news. This is related to the discovery of new gold prospects in the mining area of one of its subsidiaries in North Sulawesi. The issuer coded PSAB stock has conducted several follow-up programs that have quite positive results.

Based on the production simulation of the optimization results of the potential gold inventory (PEA inventory) and preliminary economic assessment, this new prospect produces encouraging economic indications and with a mill throughput capacity of 1.3 million tons of ore per year. The prospect is expected to produce 70 to 100 thousand ounces of gold or more than 2 to 3 tons per year for more than 10 years.

“The follow-up that has been carried out by the Company during 2024 aims to see the potential size of gold exploration targets, determine processing methods and preliminary economic assessment studies. These advanced programs are a follow-up to the initial exploration that has been carried out during 2023,” explained PSAB President Director Edi Permadi.

He also explained that with these positive results, the Company hopes that the implementation of further drilling programs and other development programs can be carried out immediately so that this prospect can become an economic mine. Programs that have been carried out include detailed geological mapping and detailed rock sampling, spectral analysis, gold resource modeling, estimation of exploration targets, gold inventory simulation, preliminary metallurgical studies and analysis, and preliminary economic assessment (PEA). Preliminary environmental and biodiversity zone mapping has also been conducted by the Company.

The gold mineralization at this prospect is a low sulfidation epithermal type primary gold mineralization consisting of three main gold-bearing quartz veins. Modeling and exploration target estimation of these main veins resulted in exploration targets ranging from 10 to 15 million tons, with a grade range of 1.5 to 2.5 g/t gold. Modeling of the other two veins, Odik and Mangkasep, yielded exploration targets in the range of 7 to 10 million tons, with grades ranging from 1 to 3 g/t gold.

Given the size of the exploration target and the high grade, this prospect has great potential to be developed into an economic gold mine. Therefore, preliminary metallurgical test work, optimization of potential gold inventory (PEA inventory) and preliminary economic assessment were conducted. A total of 959 kg of gold-bearing ore rock samples, representing 5 different ore types, were taken for metallurgical testing studies. This was done with the aim of looking at ore characteristics and recovery potential.

According to Edi, the results of this initial metallurgical testing study showed very encouraging results. The metallurgical testing included head grade analysis, quick leach test (QLT/Quick Leach Test), diagnostic leach test (DLT/Diagnostic Leach Test), bottle-rolled test and column test. Metallurgical test results show QLT values ranging from 80 to 88% or an average value of 85%, indicating oxide ore type characteristics and the presence of free gold grains in the ore rock.

This is in line with the results of the DLT (diagnostic leach test) test where the average percentage of gold associated with oxide minerals and can be extracted by cyanide leaching is 90%, while the remaining 10%, gold is associated with carbonate minerals (7%), sulfide minerals (1%) and silica minerals (2%).

The results of the 75 µm bottle rolled test also yielded values between 89 and 93%, indicating an oxide ore type and the abundant presence of free gold grains.

In contrast, the 25mm column leach test results show low values of 45 to 74%. These preliminary metallurgical test results suggest that a tank leach or CIL (carbon in leach) process is the most suitable process route with potential recoveries in excess of 90%.

For information, prior to the Company's exploration in this area, several previous international mining companies had conducted initial exploration, including the Canadian Placer Dome Inc Cooperation and PT Antam from 1989 to 1990. Then the American company Newmont from 1993 to 2000. And the British company Avocet Plc. from 2000 to 2011.