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

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PT GMT Indonesia Mewet Vein : Jelai Gold Project 4 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. 0065 JCM/GEO/2009.04 Page 12
PT GMT Indonesia Mewet Vein : Jelai Gold Project The forestry concession holder in the area is PT Intracawood Timber Products and the forestry zone map shows the concession lies within production forest and limited production forest. No protected forest (hutan lindung) exists within the concession area (Figure 3). Under Indonesian law, there are no restrictions for the development of a mining operation within production and limited production forests, so long as the relevant permits are processed. Figure 3. Forestry zone map of the project area. 0065 JCM/GEO/2009.04 Page 13
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Geology and mineralisation of the Mewet Vein, Jelai Gold Project ...

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