Toka Tindung Project

Since 2010, Archi has successful exploration activities at Toka Tindung Project as a mean to increase found gold mineralisation grade and to find new gold deposit. Along 2010-2013, exploration activities have found 2.3 million oz with total cost of US$35.5 million, which reflected an efficient spending for gold discovery at US$15.24/oz. With this achievement, gold reserves has increased to 0.92 million oz, 1.47 million oz, 1.32 million oz, 1.45 million oz for period of 2010, 2011, 2012, 2013 respectively despite depletion from mining from 2011 by 400k oz. As of June 2014, the company reported a JORC compliance (by Cube Consulting) on resources and reserves of 2.7 million oz and and 1.3 million oz respectively based on gold price assumption of US$1,250/oz.  

 

With more successful explorations that would add new or improve Archi's resources and  reserves, our financial performance would also increased. 

 

Mineral resources (JORC compliance by Cube Consulting as at 30 June 2014)

  Tonnage (million tonnes) Grade (g/t) Contained (million ounces)
Gold equivalent  Gold Silver
Category 100% Equity Gold Silver 100% Equity 100% Equity 100% Equity
Measured 7.6 7.6 1.1 2.5 0.3 0.3 0.3 0.3 0.6 0.6
Indicated 4.9 4.9 1.2 2.8 2.0 2.0 1.9 1.9 4.4 4.4
Inferred 14.9 14.9 1.0 1.7 0.5 0.5 0.5 0.5 0.8 0.8
Total 71.7 71.7 1.2 2.6 2.8 2.8 2.7 2.7 5.8 5.8
Calculations are rounded to the nearest 100,000 tonnes; 0.1 g/t Au and Ag grade; 1,000 ounces Au and Ag metal. Errors of rounding may occur.

 

Ore reserves (JORC compliance by Cube Consulting as at 30 June 2014)

  Tonnage (million tonnes) Grade (g/t) Contained (million ounces)
Gold equivalent  Gold Silver
Category 100% Equity Gold Silver 100% Equity 100% Equity 100% Equity
Proved 3.3 3.3 1.5 3.4 0.2 0.2 0.2  0.2  0.4 0.4
Probable 22.0 22.0 1.6 4.0 1.2 1.2 1.1 1.1 2.8 2.8
Stockpiles 2.6 2.6 0.8 2.1 0.1 0.1 0.1 0.1 0.2 0.2
Total 27.9 27.9 1.5 3.7 1.4 1.4 1.3 1.3 3.3 3.3
Calculations are rounded to the nearest 100,000 tonnes; 0.1 g/t Au and Ag grade; 1,000 ounces Au and Ag metal. Errors of rounding may occur.Ore Reserves are estimated using a gold price of US$1,250/oz and silver price of US$20/oz.

 

Wonogiri Project

The Randu Kuning prospect is the most advanced of the prospects within the Wonogiri project, with a total of 60 diamond holes that had been completed along 18,026 meters as of July 20, 2014. The mineral resource of the Wonogiri Project as of 22 November 2013 with a 0.2 g/t gold cut-off is as follows: 

 

Mineral Resources (JORC compliance by Computer Aided Geoscience as at 22 November 2013)

  Tonnage (million tonnes) Grade (g/t) Contained (million ounces)
Gold equivalent  Gold Copper (mn lbs)
Category 100% Equity AuEq
(g/t)
Gold
(g/t)
Cooper
(g/t)
100% Equity 100% Equity 100% Equity
Measured 28.3 20.0 0.8 0.6 0.2 0.8 0.5 0.5  0.4 0.1 0.09
Indicated 5.3 3.8 0.7 0.5 0.1 0.1 0.08 0.08 0.06 0.04 0.03
Inferred 57.1 40.4 0.4 0.2 0.1 0.6 0.5 0.4 0.3 0.02 0.02
Total 90.9 64.3 0.5 0.4 0.1 1.5 1.1 1.0 0.7 0.2 0.14

Calculations are rounded to the nearest 100,000 tonnes; 0.1 g/t Au and Cu grade; 1,000 ounces Au and Cu metal. Errors of rounding may occur.

The table above represents efective ownership of Archi after the acquisition has been completed.

 

The shallow gold rich porphyry deposit with a JORC compliant resource estimate of 1.54 Million ounce gold equivalent covering the Randu Kuning prospect consists of: 1) 1.01 million oz gold and 2) 200 million pounds copper. Significant proportion of the gold resource falls in the JORC Measured and Indicated categories: 33.7 million tonnes at 0.55 g/t gold (>590,000 oz) and 0.15% copper.