Geology and mineralisation of the Mewet Vein, Jelai Gold Project ...

PT GMT Indonesia
Mewet Vein : Jelai Gold Project
3
3.1
PROPERTY DESCRIPTION
Location
The Jelai Gold Project is located 1,550 kilometres northeast of Jakarta, the capital city of
Indonesia, close to the east coast of the Province of East Kalimantan (refer to Figure 1). The
major towns in the area include Balikpapan, approximately 500 kilometres south of the project
area and Tarakan 45 kilometres east of the project.
The centre of the Jelai Gold Project is located at approximately E 117° 00’ 00” and N 03° 10’ 00”
and the centre of the project lies approximately 410 kilometres north of Samarinda, the
provincial capital of East Kalimantan.
3.2
Tenure
The concession area is held by JCM, which is beneficially controlled by KGC through a system
of agreements with the Indonesian-owned company JCM, as a kuasa pertambangan (or KP,
literally translated as a “mining licence”). The KP system in Indonesia is a mining rights system
issued by the Kabupaten (Regency) and is a smaller, wholly locally owned mining concession
system that is valid through several periods of activities from general surveys till production.
The concession covers an area of 4,929 hectares. The concession coordinates are outlined in
Table 1 and the detailed concession area is shown in Figure 2.
The author has sighted the concession documents and they appear valid with the following
details:
• Date issued : 4 th June 2007,
• Type : KP, Exploration Period,
• Period : 2 years, valid from the 1 st June 2007 until the 1 st June 2009
• Block Code : 64 PP 22 023
• Letter Number : 350/K-VI/540/2007
Under Indonesian law, the KP can be extended for a further 3 years, to a maximum of 5 years,
before progressing to the next stage of construction/production.
Point Number Longitude Latitude
1 E 116° 58' 15" N 03° 14' 30"
2 E 117° 01' 00" N 03° 14' 30"
3 E 117° 01' 00" N 03° 13' 45"
4 E 117° 02' 00" N 03° 13' 45"
5 E 117° 02' 00" N 03° 11' 30"
6 E 117° 00' 00" N 03° 11' 30"
7 E 117° 00' 00" N 03° 11' 00"
8 E 116° 59' 15" N 03° 11' 00"
9 E 116° 59' 15" N 03° 09' 45"
10 E 116° 57' 45" N 03° 09' 45"
11 E 116° 57' 45" N 03° 13' 15"
12 E 116° 58' 15" N 03° 13' 15"
Table 1. Block coordinates of the JCM concession.
0065 JCM/GEO/2009.04 Page 10