The Awak Mas gold project in Indonesia is now wholly owned by Australian-based Lone Star Exploration (LSE-V).
Previously, the junior held a 45% stake in the property. It will purchase the remainder from Australian-listed Gasgoyne Gold Mines (with a 45% interest) and South African-based JCI (10%).
“With an expanding resource currently in excess of 2.7 million oz., the agreement is a clear indication of our confidence that Awak Mas will become one of Indonesia’s major gold-producing regions,” Chairman Robert Wilde says.
Recent drilling has increased the gold resource by 33%, to 50.5 million tonnes grading 1.7 grams gold per tonne. A prefeasibility study is expected by early January.
Lone Star will pay US$41 million to Gasgoyne for its 45% interest, whereas JCI will receive 25 million Lone Star shares for its 10% stake.
Wilde says a production decision is expected in the new year. Preliminary plans call for construction of an open-pit mine.
The project covers part of the Central Sulawesi metamorphic belt, a northerly trending strip between two regional faults.
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