SOUTHEAST ASIA SPECIAL — Teck teams with Aussie partner

In Indonesia, six new contracts of work (CoWs) totalling 11,405 sq. km.

have been awarded to Teck (TSE) and its Australian partner, Meekatharra Minerals.

The companies hold a 90% interest in five of the projects, with Indonesian partner PT Austindo Mining holding a 10% stake.

Two of the CoWs are in north Sumatra, two are in southwest Sumatra, and one is in northeast Kalimantan.

The Kalimantan CoW is on the “Trans-Borneo gold belt.” which is defined by the Mt. Muro, Kelian, Busang linear alignment; it is northeast of the Busang deposit. Crosscutting fault structures, considered to be significant in localization of mineralization at Busang, have been noted on this CoW.

The other projects are geologically focused on the Trans-Sumatra fault zone.

Teck and Meekatharra hold a 75% interest in the sixth new CoW; another Indonesian firm holds the balance.

The partners hold other ground in Indonesia, and Meekatharra has projects with other partners as well.

The Australian firm plans to seek a listing on one of the North American exchanges, in part to help finance its 85%-owned Way Linggo project in southern Sumatra.

A feasibility study has been completed for that gold-silver project, and financing is being arranged. Way Linggo hosts 459,414 tonnes of 10.57 grams gold and 158 grams silver per tonne, amounting to 187,000 oz. gold-equivalent.

Mining is planned to start in early 1997 at a rate of 100,000 tonnes per year, producing up to 35,000 oz. gold and 500,000 oz. silver annually.

Capital costs are expected to total US$15 million, with cash operating costs below US$200 per oz. Capital recovery is expected in less than two years.