INTRODUCTION: STYLES & GOLDRESOURCES

Dr.rer.nat. Arifudin IdrusAssociate Professor in Economic Geology

Department of Geological EngineeringGadjah Mada University, Yogyakarta

E-mail: arifidrus@ugm.ac.id

In-House TrainingUNHAS Makassar, 25-27 September 2014

INTRODUCTION: STYLES & GOLDRESOURCES

Dr.rer.nat. Arifudin IdrusAssociate Professor in Economic Geology

Department of Geological EngineeringGadjah Mada University, Yogyakarta

E-mail: arifidrus@ugm.ac.id

In-House TrainingUNHAS Makassar, 25-27 September 2014

Porgera, Zone 7Papua New Guinea

SleeperNevada, USA

Crustal environment in which major gold deposit styles from

Robert et al., 2007 (in Lipson, 2014)

Crustal environment in which major gold deposit styles from

Robert et al., 2007 (in Lipson, 2014)

Global porphyry Cu-Au depositsGlobal porphyry Cu-Au deposits

Global Tectonic Setting vs Gold DepositsGlobal Tectonic Setting vs Gold Deposits

}Different classesof epithermal deposits

Relative Amounts of Gold(>5 Moz deposits, 1997)

50% Witwatersrand12% Epithermal10% Porphyry (+ intrusion hosted)12% Sediment hosted (incl. 4% “Carlin”)9% Greenstone lode (“orogenic”)7% Other (Fe Fm, VHMS, etc.)

50% Witwatersrand12% Epithermal10% Porphyry (+ intrusion hosted)12% Sediment hosted (incl. 4% “Carlin”)9% Greenstone lode (“orogenic”)7% Other (Fe Fm, VHMS, etc.)

Arribas, 2000

Relative Amounts of Gold(>5 Moz deposits, 1997)

50% Witwatersrand12% Epithermal10% Porphyry (+ intrusion hosted)12% Sediment hosted (incl. 4% “Carlin”)9% Greenstone lode (“orogenic”)7% Other (Fe Fm, VHMS, etc.)

50% Witwatersrand12% Epithermal10% Porphyry (+ intrusion hosted)12% Sediment hosted (incl. 4% “Carlin”)9% Greenstone lode (“orogenic”)7% Other (Fe Fm, VHMS, etc.)

INDONESIAN GOLD RESOURCES ANDEXPLORATION CHALLENGES

Reference: Prihatmoko, 2010

INDONESIAN GOLD RESOURCES ANDEXPLORATION CHALLENGES

Reference: Prihatmoko, 2010

133.0

130.0

150.0

170.0

190.0

210.0

230.0

250.0

Gol

d P

rodu

ctio

n(T

onne

s)

INDONESIA GOLD PRODUCTION (1990-2010)Source: ESDM (2011); KITCO (2011)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Gold Production

(Tonnes) 11.7 16.0 38.2 43.3 42.6 62.8 83.6 90.0 124.0 133.0

Gold Price (USD) 385.5 362.1 343.8 359.7 384.0 383.7 387.8 331.0 294.2 278.9

11.716.0

38.243.3 42.6

62.8

83.690.0

124.0

10.0

30.0

50.0

70.0

90.0

110.0

130.0

Gol

d P

rodu

ctio

n(T

onne

s)

133.0

224.7

187.1

172.1

127.8

163.1159.3

900.00

1,000.00

1,100.00

1,200.00

1,300.00

1,400.00

1,500.00

GoldPrice

(USD)INDONESIA GOLD PRODUCTION (1990-2010)Source: ESDM (2011); KITCO (2011)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

133.0 124.0 224.7 187.1 172.1 127.8 163.1 116.3 159.3 29.1 97.7 109.8

278.9 279.1 271.0 309.7 363.3 409.7 444.7 603.4 695.3 871.9 972.3 1,224

124.0127.8

116.3

29.1

97.7

109.8

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

Year

China South Africa United States Australia Indonesia2007

Gold (Tonnes) 276 272 255 251

276 272 255 251

-

50

100

150

200

250

300

350

400

Gol

d Pr

oduc

tion

(Ton

nes)

TOP TENS GOLD PRODUCERS (2007)Source: USGS 2007 Mineral Year Book

China Australia United States South Africa Russia2010

Gold (Tonnes) 341 266 240 190

341

266240

190

-

50

100

150

200

250

300

350

400

Gol

d Pr

oduc

tion

(Ton

nes)

TOP TENS GOLD PRODUCERS (2010)Source: Gold Mining Journal 2011

Indonesia Peru Russia Canada PNG Ghana

171 167 153 93 67 63

171 167 153

9367 63

Total: 1,768 tonnes

Russia Peru Indonesia Ghana Canada Uzbekistan

190 170 120 100 90 90

190170

120100 90 90

Total: 1,797 tonnes

GOLD DEPOSIT TYPES

• Witwatersrand

• Greenstone Belt

• Epithermal including Carlin (sediment hosted)

• Porphyry/ skarn

• Orogenic Gold

• Volcanogenic Massive Sulfide (VMS)

• Others

• Witwatersrand

• Greenstone Belt

• Epithermal including Carlin (sediment hosted)

• Porphyry/ skarn

• Orogenic Gold

• Volcanogenic Massive Sulfide (VMS)

• Others

GOLD DEPOSIT TYPES

• Witwatersrand

• Greenstone Belt

• Epithermal including Carlin (sediment hosted)

• Porphyry/ skarn

• Orogenic Gold

• Volcanogenic Massive Sulfide (VMS)

• Others

• Witwatersrand

• Greenstone Belt

• Epithermal including Carlin (sediment hosted)

• Porphyry/ skarn

• Orogenic Gold

• Volcanogenic Massive Sulfide (VMS)

• Others

DEPOSIT MODEL (Corbett, 2005)DEPOSIT MODEL (Corbett, 2005)

REGIONAL GEOLOGY OF INDONESIAREGIONAL GEOLOGY OF INDONESIA

MAGMATIC ARCS OF INDONESIA(Carlile ane Mitchel, 1994)

MAGMATIC ARCS OF INDONESIA(Carlile ane Mitchel, 1994)

GOLD RESOURCES + RESERVES 1969 – 2010 (desk study)

167.66 Moz (5,214.38 tonnes) gold

News Release15.84 moz

UnpublishedReport

4.34 moz

Published Paper147.48 moz

GOLD RESOURCES + RESERVES 1969 – 2010 (desk study)

167.66 Moz (5,214.38 tonnes) gold

News Release15.84 moz

News Release

N: 94

News Release

Published Paper

UnpublishedReport

GOLD – BY MAGMATIC ARC 167.66 Moz (5,214.38 tonnes) gold

Halmahera3.83 moz

Other0.90 moz

Papua100.15 moz

GOLD – BY MAGMATIC ARC 167.66 Moz (5,214.38 tonnes) gold

Sunda-Banda35.59 moz

Kalimantan11.40 moz

Sunda-BandaKalimantanKalimantan

11.40 moz

Sulawesi15.80 moz

Kalimantan

Sulawesi

Papua

GOLD – BY DEPOSIT TYPE 167.66 Moz (5,214.38 tonnes) gold

HS Epithermal9.41 moz

VMS0.97 moz

Mesothermal2.87 moz

Sediment Hosted3.08 moz

Alluvial1.18 moz

Skarn47.78 moz

HS Epithermal9.41 moz

LS Epithermal31.07 moz

GOLD – BY DEPOSIT TYPE 167.66 Moz (5,214.38 tonnes) gold

Porphyry71.3 moz

Alluvial1.18 moz

Deposit TypePorphyry

Skarn

HS Epithermal

LS Epithermal

VMS

Mesothermal

GOLD – BY PROJECT STATUS 167.66 Moz (5,214.38 tonnes) gold

Mined Out20.00 mozExploration

37.52 moz

Unknown1.13 moz

GOLD – BY PROJECT STATUS 167.66 Moz (5,214.38 tonnes) gold

Mined Out20.00 moz

Project Status

Mined Out

Being Mined109.02 moz

Mined Out

Being Mined

Exploration

Unknown

GOLD MINES 1990-2010

Mt. MuroBuduk

Mt. MuroKelian

CikidangBatu Hijau

Rawas

Pongkor

Lb Tandai Mt. Muro West

Cibaliung

Buduk MeselGosowong

Active

Closed

Sediment Hosted

LS Epithermal

Porphyry/ Skarn

VMS

…….

…….

…….

…….

Mesel

Kelian

Grasberg

Batu Hijau Wetar

Kencana

PRIMARY GOLD DEPOSITS/ OCCURENCES

Seruyung TombulilatoPungkut

MartabeSeruyung Tombulilato

Way Linggo

Elang

Pungkut

Mirah

Bukit Tujuh

Palu

Jelai-Mewet

Pangulir

Ojolali

PRIMARY GOLD DEPOSITS/ OCCURENCES

Toka TindungTombulilato

Active

Closed

Sediment Hosted

LS Epithermal

HS Epithermal

Porphyry/ Skarn

Mesothermal Vein

…….

…….

…….

…….

…….

Toka TindungTombulilato

WabuAwak Mas

MotombotoPalu

Pangulir

0.010

0.100

1.000

10.000

100.000

1000.000

0.100 1.000 10.000 100.000 1000.000

Deposite Size (Mt)

Gra

de

(g

/t A

u)

Porphyry Skarn VMS Sedimen Hosted LS Epithermal Mesothermal Vein HS Epithermal

GEOLOGICAL TARGET TYPES

0.010

0.100

1.000

10.000

100.000

1000.000

0.100 1.000 10.000 100.000 1000.000

Deposite Size (Mt)

Gra

de

(g

/t A

u)

Porphyry Skarn VMS Sedimen Hosted LS Epithermal Mesothermal Vein HS Epithermal

LS EPITHERMALField

0.010

0.100

1.000

10.000

100.000

1000.000

0.100 1.000 10.000 100.000 1000.000

Deposite Size (Mt)

Gra

de

(g

/t A

u)

Porphyry Skarn VMS Sedimen Hosted LS Epithermal Mesothermal Vein HS Epithermal

GEOLOGICAL TARGET TYPES

HS EPITHERMALField

SKARNField

0.010

0.100

1.000

10.000

100.000

1000.000

0.100 1.000 10.000 100.000 1000.000

Deposite Size (Mt)

Gra

de

(g

/t A

u)

Porphyry Skarn VMS Sedimen Hosted LS Epithermal Mesothermal Vein HS Epithermal

SKARNField

PORPHYRYField

GOLD MINE – LAPSE TIMESMine Owner Status

Lebong Tandai Billiton (CSR) ClosedGosowong Newcrest ClosedWetar Billiton ClosedErtsberg Freeport ClosedPongkor Antam ProductionKelian Riotinto ClosedMt. Muro Aurora ClosedMt. Muro Aurora ClosedKencana Newcrest Production

Mesel Newmont ClosedRawas Laverton ClosedCibaliung Austindo/ Antam ProductionBatu Hijau Newmont ProductionMt. Muro West Straits ProductionGrasberg Freeport Production

Average Lapse Time (Years)

GOLD MINE – LAPSE TIMESStatus

ContractSigned Production Lapse

Closed 1985 1986 1Closed 1997 1999 2Closed 1986 1991 5Closed 1967 1973 6Production 1988 1994 6Closed 1985 1992 7Closed 1985 1994 9Closed 1985 1994 9Production 1997 2006 9

Closed 1986 1996 10Closed 1986 1997 11Production 1998 2010 12Production 1986 1999 13Production 1985 2004 19Production 1967 1989 22

9.5

GOLD MINE – LIFE SPANSMine 90 91 92 93 94 95 96 97 98

Grasberg

Lebong Tandai

Alluvials

Wetar

Kelian

Pongkor

Mt. Muro

Mesel

RawasRawas

Gosowong

Cikidang

Batu Hijau

Mt. Muro West

Kencana

Cibaliung

Porphyry

LS Epithermal

Alluvial

GOLD MINE – LIFE SPANS98 99 00 01 02 03 04 05 06 07 08 09 10

VMS

Sediment hosted

FACTORS AFFECTING INDUSTRY’S FUTURE

Geological Prospectiveness (++)

Country Stability (+)

Gold Price (++)

Legal/Commercial Basis ( - )New Mining Law, lack of implementing regulations

Intensity of Exploration Efforts (– to +)

Geological Prospectiveness (++)

Country Stability (+)

Gold Price (++)

Legal/Commercial Basis ( - )New Mining Law, lack of implementing regulations

Intensity of Exploration Efforts (– to +)

FACTORS AFFECTING INDUSTRY’S FUTURE

Geological Prospectiveness (++)

Country Stability (+)

Gold Price (++)

Legal/Commercial Basis ( - )New Mining Law, lack of implementing regulations

Intensity of Exploration Efforts (– to +)

Geological Prospectiveness (++)

Country Stability (+)

Gold Price (++)

Legal/Commercial Basis ( - )New Mining Law, lack of implementing regulations

Intensity of Exploration Efforts (– to +)

CONCERNS IN INDONESIA(non technical aspects)

Uncertainty in mineral tenement system (Mining LawNo.4/ 2009 with lack of implementing regulations)

Forestry overlapping issues

Pains of regional autonomy

Illegal mining

Local community / NGOs

Uncertainty in mineral tenement system (Mining LawNo.4/ 2009 with lack of implementing regulations)

Forestry overlapping issues

Pains of regional autonomy

Illegal mining

Local community / NGOs

CONCERNS IN INDONESIA(non technical aspects)

Uncertainty in mineral tenement system (Mining LawNo.4/ 2009 with lack of implementing regulations)

Forestry overlapping issues

Pains of regional autonomy

Illegal mining

Local community / NGOs

Uncertainty in mineral tenement system (Mining LawNo.4/ 2009 with lack of implementing regulations)

Forestry overlapping issues

Pains of regional autonomy

Illegal mining

Local community / NGOs

EXPLORATION CHALLENGES technical aspects

2. Exploration “going deeper”

Development of new geological/ exploration model Application of new technology Advanced exploration techniques and approaches Higher exploration costs

1. Generate/ develop new projects

2. Exploration “going deeper”

Development of new geological/ exploration model Application of new technology Advanced exploration techniques and approaches Higher exploration costs

EXPLORATION CHALLENGES technical aspects

2. Exploration “going deeper”

Development of new geological/ exploration model Application of new technology Advanced exploration techniques and approaches Higher exploration costs

1. Generate/ develop new projects

2. Exploration “going deeper”

Development of new geological/ exploration model Application of new technology Advanced exploration techniques and approaches Higher exploration costs

GOING DEEPER EXAMPLEGOING DEEPER EXAMPLE(GOSOWONG(GOSOWONG –– KENCANA)KENCANA)GOING DEEPER EXAMPLEGOING DEEPER EXAMPLE(GOSOWONG(GOSOWONG –– KENCANA)KENCANA)

GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA)GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA) Richards et al (2005)

GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA)GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA) Richards et al (2005)

GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA)GOING DEEPER EXAMPLE (GOSOWONGGOING DEEPER EXAMPLE (GOSOWONG –– KENCANA)KENCANA) Richards et al (2005)

GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR)GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR)

GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR) Leary (2007)GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR)

237.25m @ 4.14g/t Au

Conglomerate

Late Andesite

GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR)

58.9mt @ 7.23 g/t Au (13.7 moz)

Andesite

Conglomerate

GOING DEEPER EXAMPLE (FRUTA DEL NORTEGOING DEEPER EXAMPLE (FRUTA DEL NORTE -- ECUADOR)ECUADOR) Leary (2007)

58.9mt @ 7.23 g/t Au (13.7 moz)

Andesite

Serujan East Wall-Mt. MuroSerujan East Wall-Mt. Muro

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