Vale joins Tujuh Bukit gold & copper project

Giant mining company Vale S.A. (New York-listed), the world's second largest mining company, has decided to join forces with Intrepid Mines (IAU) Ltd, Australia to develop Tujuh Bukit gold and copper project in East Java. 

Intrepid Mines told Australia Stock Exchange (ASX) today that it has signed a heads of agreement with Vale Exploration Pty Ltd, a subsidiary of Vale, granting Vale an option to acquire rights to Intrepid's Tujuh Bukit sulphide copper-gold project in Indonesia.

Under the terms of the HoA, Vale could earn a 60% shareholding in a JV holding the rights to the Tujuh Bukit project by, among other terms, spending a total of US$40 million.

Intrepid and its Indonesian alliance partner, PT Indo Multi Niaga, would retain the remaining 40% interest in the project, and would be free carried by Vale through the completion of a bankable feasibility study.

Intrepid and Indo Multi Niaga would continue to retain sole rights to the oxide gold-silver deposit which sits above the sulphide copper-gold deposit.

Preliminary work undertaken by Intrepid at Tujuh Bukit has identified the scope of two distinct projects: (1) an oxide gold-silver project, at which 2.57 million ounces of gold equivalent resources have been estimated, and (2) a sulphide copper-gold porphyry and high-sulphidation ore body. 

Tujuh Bukit is located in East Java, covers an area of approximately 11,600 hectares, about 205 km southeast of Surabaya. But the project's future is pending a review about forest land status of the location. 

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