Tandai Project (100% owned)

The Tandai Project is located approximately 100km north of the Provincial capital of Bengkulu in the Regency of North Bengkulu in Sumatra. The Tandai exploration permit (IUP) covers an area of 140.4km².

The Project has a long history of mining from the early part of the 20th century by the Dutch until post World War II with a underground production of more than 1.4 million ounces of gold and 15 million ounces of silver at grades of 15.4 g/t Au and 167 g/t Ag. The historic Dutch mining town at Tandai still remains, and was re‑furbished by PT Lusang Mining Ltd (in a joint venture with CSR, then Billiton) when the mine was redeveloped and worked between 1985 and 1995. The deepest levels of the mine were still in ore when abandoned during the Japanese invasion of Indonesia during World War II.

Tandai is interpreted to represent a low sulphidation epithermal system with gold-silver mineralisation hosted by a series of veins and breccias distributed over a vertical extent exceeding 500m. Three major east-west trending mineralised structures are identified within the environs of the historic Lebong Tandai mine. These include the Toko Rotan, Lebong Tandai and Glumbuk structures. All three structures have varying grades and widths of mineralisation. A small amount of mining activity has taken place at Glumbuk, with Toko Rotan remaining undeveloped due to low surface gold grades. Despite the long history of production, the exploration potential of the extensive vein system is considered significant as evidenced by the recent shallow, wide drill hole intersections at Lusang North associated with a high-grade vein breccia system.

Significant drill results from Lusang North included;

- 19.4m at 4.2 g/t Au and 19 g/t Ag from 36m in hole TDD07009A

- 21m at 4.8 g/t Au and 36 g/t Ag from 87m in hole TDD11024

- 17m at 5.4 g/t Au and 7 g/t Ag from 21m in hole TDD11025

- 4.1 m at 8.84 g/t Au and 17.9 g/t Ag from 60m in hole TDD11025

In addition to outlining further potential at Lebong Tandai and at the Ulukau epithermal vein system further south, a new greenfields discovery has recently been made at the Asa prospect, located in the far south of the IUP. Asa is a vein breccia target associated with high gold and base metal results. Rock chip assays of up to 13.50 g/t Au, 291.0 g/t Ag, 5.20% Cu and 5.67% Pb were returned from channel samples. The strike of the host structural trend has been estimated at 2km.