New Asia Gold Corporation (NWAG) is a gold mining company with leaseholds and tenements in Indonesia on the island of Borneo. New Asia Gold’s East Kalimantan Gold Project (EKGP) has existing proven reserves of 330,000 ounces of gold that have been drill-defined and independently verified. The company hires contractors to help extract the gold and then sells it on the commodities markets.
New Asia Gold’s property rights cover a total of 4,375 hectares, including the main resource area, an area tentatively chosen to host mine infrastructure, and an additional prospect west of the main resource area with similar geology to the mineralized zone that has yet to be drill tested. There remains a significant potential to substantially increase proven reserves by an additional 170,000 ounces through shallow infill drilling. Total gold reserves of 500,000 ounces would value the project at $310 million after mining costs with gold priced at $800 per ounce.
Further resources could be discovered adjacent to the main deposit area where previous drilling has intersected mineralization, but no follow-up has been completed. The geological environment is favorable for a host of significant mineral deposits, particularly gold and copper. The fact that EKPG has both proven reserves and upside potential makes it a highly desirable asset. The managers of New Asia Gold have the necessary experience in geological exploration and mining development to maximize extraction of the project’s total resources.
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