Nusantara Resources Ltd. executed a nonbinding memorandum of understanding with state-owned power utility PT PLN (Persero), securing grid power for its wholly owned Awak Mas gold project in South Sulawesi, Indonesia, according to an Aug. 15 news release.
The contract provides power to the company for the long term via a high voltage connection of approximately 35 kilometers, which will be constructed in time for commissioning of the proposed mining project, subject to the execution of a final agreement by June 2018.
Meanwhile, Nusantara intends to kick off 8,000-meters of resource expansion drilling in the next few weeks, with an updated mineral resource and ore reserve estimate planned for release in early 2018.
The company also plans to soon start work on the definitive feasibility study, with completion targeted in mid-2018.
One Asia Resources Ltd. spin off Nusantara raised A$16.2 million in its IPO and started trading on ASX in early August.