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

PT GMT Indonesia
Mewet Vein : Jelai Gold Project
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4.1
PROJECT ENVIRONMENT
Access
Access to the region is by daily domestic airline services with flights between Balikpapan and
Tarakan (less than 1 hour flight time). Regular domestic flights service Balikpapan with Jakarta
(2 hour flight). Tarakan can be an ideal base for operations within northeast Kalimantan, with
supermarket shopping, hotel and port facilities. However, JCM has chosen Tanjung Selor, with
less comprehensive facilities, to be the operating base for the operations for several reasons:
• Since regional autonomy, the administration of mining licences has returned to the
Kabupaten level and the present capital of the Kabupaten of Bulungan is Tanjung Selor,
• Road access is now available between Tanjung Selor and the project site,
• Administrative requirements that a branch office needs to be opened in the Kabupaten in
which the operation is conducted.
Speedboats allow rapid access from various major towns to the numerous large inland
waterways present in the area. Longboats with 40 hp outboard engines provide further access
upstream. From the major riverine townships and logging camps, local ketingting (large
motorised canoe) craft can be hired to provide access to the interior. LCT (landing craft) vessels
are also available to transport heavy equipment along these river systems. A large network of
logging tracks and camps is situated in the interior, radiating from riverine logging camps. These
provide further valuable access to the interior using motorbikes.
Specifically, the Jelai-Mewet project area is located on the eastern side of the main Intraca
logging road, which extends west from the main riverine logging camp on the S. Sekatak, at
approximately Kilometre 16 road marker. The Intraca Camp can be reached by road from
Tanjung Selor (4-5 hours) or by speedboat from Tarakan (1.5 hours).
Presently access into the concession area is excellent from the Intraca Camp, with JCM resweeping
the logging road with a bulldozer, albeit rain can affect the logging road causing
slippery conditions and several bridges are in need of refurbishment as they have been
abandoned for several years by the logging company, PT Intracawood Timber Products.
4.2
Climate
The climate is wet tropical-monsoonal, with a rainfall of 3,500 mm/per annum, and a drier
season between May and September. Daily temperatures range from 25°-35°C, relative
humidity is always above 60%. Winds are generally light. Rainforest is ubiquitous in the area
with a wide range of trees, shrubs, tubers and succulents.
4.3
Existing Infrastructure
There is little infrastructure in the area apart from a number of disused or renovated logging
roads. The nearest asphalt road is 16 kilometres north of the concession area. There are limited
public power transmission facilities in the area but, as is often the case in many parts of
Indonesia, these infrastructure issues can be managed.
For the actual mine infrastructure, there is sufficient area within the concession to establish
mining and processing infrastructure. The area is suitable for tailings storage facilities and the
area is not in a seismically active zone. There is an abundance of skilled mining personnel in
Indonesia and a large population of unskilled labour is available within the immediate area of the
project.
It is suggested that the project development, should it proceed, would not be dissimilar to other
mining projects successfully developed in Indonesia.
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