Asera Report 62

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Preface

This exploration report is result of exploration activity on mining concession area base on Konawe
regent permit No. 62/2007 at February 19th, 2007 with covering 5.923 Ha. This Concession area is
located on Asera district North Konawe Regency South east Sulawesi Province.

Inside of this report is discuss about exploration activity that conducted by geologist and exploration
team of PT. Pertambangan Bumi Indonesia with 1 year duration. These activities are geological mapping,
drilling, sampling analysis, and resources evaluation.

On the end, we hope this report will useful for next plan.

Kendari, December 2008

PT. Pertambangan Bumi Indonesia

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
ABSTRACT

Exploration activity is accomplished by PT. Pertambangan Bumi Indonesia and it is continuity activity for
founding out nickel deposit on concession area. This activity is base on Konawe regent permit No.
62/2007, February 19th, 2007 with covering 5.923 Ha. Located in Asera District North Konawe Regency
South East Sulawesi.

Concession area divides as 3 major blocks and 11 sub blocks. The blocks as follows:

1. Block I is located on south of concession area and divide into 6 sub blocks, with block 2, 3, 5, and
6 has drilling by hand augers.
2. Block II is located on middle of concession area. This block has drilling by Jacro drilling machine.
38 bore hole is accomplished with vary range of depth between 20 m to 41 m; totally depth is
932 m with 200 m grid space.
3. Block III is located on north of concession area. This block divide into 5 sub block, with block 1
and block 2 has drilling by hand augers.

Concession area is administratively located on Sambandete, Paka Indah and Flora Indah Village, with
positions is 03015’15,36”-03023’49,54”S and 122006’18,46”-121010’57,38”E.

Local geology is dividing into 2 major parts: South part is covering by ultramafic rock with Lasolo Rivers
as a border and North part is covering by Pandua formation and ultramafic rock on the hilly. Base on
observation fields, commonly ultramafic rock has serpentinization process excluding on middle part of
concession area.

From observation on surface and drilling record shown saprolite zone appear on around ultramafic hilly
with high at 200 m above sea level. Float quartz box work as silicification process is founded at the top
of ultramafic hilly, this is indication of fracture on dunite rock and it is suitable for nickel laterite process.

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Content

Page

Chapter I Introduction 4
1 Background 4
2 Permit 5
3 Aim and Objective 5
4 Time and Place 5
5 Tools and Exploration Equipments 6
6 General Information 6-7
7 Personnel 7
Chapter II Regional Geology and Characteristic of Nickel Laterite Deposit 9
Chapter III Exploration Activity 11
1 Literature study and pre-field survey 11
2 Geological mapping 11
3 Sampling grab 11
4 Sampling analysis 11
5 Mining route design 12
6 Data processing 12
Chapter IV Exploration Activity Result 13
1 Rock and Soil Sampling 13
2 Drilling 13
3 Potential 13
4 estimation Reserve 13
Chapter V Closing 22
Bibliograpy 23
- Correlation grade map
- Planning map
- Jacro and Hand augers drilling
- Jacro and Hand Augers Grade Table
- Hand Augers Description Table
- Exploration Activity Documentation
- Coordinate table
- North Konawe Regent Permit

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Chapter I

Introduction

I.1 Background

Term of “Laterite” is origin from Latin word as mean as “brick earth” or soil with color similar as brick.
Geology term is soil with rich of iron (Fe) and alumina (Al) on oxidation form (Lelong et al, 1976).

Laterite is residual mechanical weathering process of rich iron magnesium rock, than deposit by erosion
or none. Commonly iron magnesium rock is depiction appearance of olivine, pyroxene, amphibole, and
biotite minerals.

The weathering process is owing to climate change such as rain and humidity. The process depend on
speed of erosion, hydrology and permeability factor of rock, if speed of erosion is high than altered rock
or soil can be deposit to the low land or foot hill, but if speed of erosion low but ground water content
carbonate acid and permeable rock is high than laterite will deposits near to source rock (insitu).

Nickel laterite deposits is laterite content high of nickel (Ni) element. Not many of rock and minerals has
nickel matter, only olivine group such as Fo90 – Fa10 content 0,3 % Ni and pyroxene group but such as
ortho pyroxene has 0,03 – 0,06 % Ni grade only. This statement shown that Dunite rock as source rock
will result much nickel content if it alterated.

Serpentine mineral is olivine mineral alterated by process hydration and oxidation. Serpentine rock has
iron and nickel is namely garnerite, with chemical process as follows:

2Mg2SiO4 + 4H + 0,5O2  Mg3SiO5(OH)4+Mg-2(aq)

Olivine Serpentine

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
I.2 Permit

Concession area is located in Asera District North Konawe Regency with covering 5.923 Ha, this base on
Konawe Regent Permit No. 62/2007, expire for 3 (three) years, start on February 19, 2007 until February
19, 2010.

I.3 Aim and Objective

This activity aim is to known nickel laterite scattering potential and deposit in concession area. It is
purpose for zoning of prospected area and data for next stage of mining planning.

I.4 Time and Place

This activity is conducted at Q1 and Q2 on 2008. It taking place on Asera District. Collection data is result
from drilling, pit test, rotary drilling (Jacro), rock sampling and Soil sampling.

Picture 1. Exploration survey location

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Location of survey area can be reach by vehicle from Kendari city to Asera district North Konawe
Regency, approximately 4 hours.

I.5 Tools and Exploration equipment

Tools and equipments are use in this activity as follows

1. Geology Hammer.
2. Brunton Compass.
3. Sunton Compass.
4. Garmin Global Positioning System (GPS).
5. Digital camera.
6. Altimeter.
7. Nitton x-ray.
8. 50 M roll mater.
9. Plastic sampling bag.
10. Stationery.
11. Field note.
12. Topography map scale 1:50.000.
13. Hand augers.
14. Rotary drilling (Jacro).

I.6 General Information

I.6.1 General Condition of study area

Concession area is located in Asera District North Konawe Regency with covering 5.923 Ha, it is occupied
by Protected forest 335 Ha, Production forest 2.805 Ha, Conversion Production forest 2.200 Ha, and
Transmigration 563 Ha.

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
The tribe in this area are composite of Bugisness, Tolaki, Mekongga, and a little from Javanese and
Baliness. The economics of local peoples are majorly farmers, a few of government officer, and
entrepreneurs. The religions are majorly Islam and a few of Christian and Hindu.

I.6.1 Basic data

This study is use some of basic data as reference such as Indonesia Land Form Map Scale 1 : 50.000
issued by BAKOSURTANAL, South East Sulawesi Forestry map Scale 1: 50.000 issued by South East
Sulawesi Forestry Service and Geology and Mining Potential Map Scale 1 : 630.000 issued by South East
Sulawesi Mining and Energy Service.

I.7 Personnel

No. Job Group Name Job Description Others


1 2 3 4 5
1 Management 1. Tjong Hon Khong 1. President Director
2. Hendri 2. Branch Manager
3. Junianto 3. Operation Head
2 Expert 1. Lediyantje Lintjewas, ST 1. Geologist
2. Umar Iribaram, ST 2. Geologist
3. Abram Padaunan, ST 3. Geologist
4. Yunus Faidiban, ST 4. Geologist
5. Muh. Kasim, ST 5. Geologist
6. Anwar 6. Geologist
3 Surveyor 1. Sutarno 1. Operator
2. Yan Gustaf 2. Operator
3. Kameluddin 3. Operator
4. Muh. Basri 4. Operator
5. Darwis Koko 5. Helper
6. Ansar 6. Helper
7. Lajoni 7. Helper
8. Feri 8. Helper
9. Rayon 9. Assistant Geologist
10. Asep Sujator P. 10. Assistant Geologist
11. Nurdin 11. Assistant Geologist

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
12. Suwartoyo 12. Assistant Geologist
4 Maintenance 1. Samson 1. Maintenance
2. A. Riady 2. Maintenance
5 Sampling 1. Suardi 1. Keeper
handler 2. Rudy 2. Keeper
6 Administration 1. Ramli Jaya, SH 1. HRD
2. Susanty 2. Finance
3. Lisa Febrianty 3. Accounting
4. Udin SE 4. HRD Staff
5. Felix 5. HRD Staff
7 Security 1. Abdul Azis 1. Security
2. Abdul Kadir 2. Security
3. Abdul Hamid 3. Security
4. Haerul 4. Security
8 Logistic 1. Susanty 1. Staff
2. Paddah 2. Staff

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Chapter II

Geology Regional and Characteristic Nickel Laterite Deposit

II.1 Geology Regional

Concession area of PT. Pertambangan Bumi Indonesia is located at Asera district, It is North Ultramafic
block that geologically separated from their main Ultramafic Block namely Hialu Ultramafic Block
Province. Lasolo Rivers is interpretation as boarder; it is thrust fault that linked to Landawe Rivers on
south that turn to east. This fact is explanation of variation of rock associated on study area. Hilo
Ultramafic Block is ofiolite and arrangement of peridotit, harzburgit, dunit and serpentinit.

Three distinctly different geology provinces are recognized in Sulawesi Island. They are west and east
Sulawesi, which are divided by the north-trending fault zone at about 120025’ east longitude, and third,
the Baggai Islands, Sula Islands, and Buton Islands. The Study area is located on East Sulawesi geology
province.

East Sulawesi province consists largely of basic and ultrabasic igneous rocks as known as ultramafic
complex and associated schistose metamorphic rock. The western part consists predominantly of schist
in with gaucophane increase in abundance westward to the boundary with west Sulawesi province.

Basic and ultrabasic rocks cover large areas in the eastern part of east arm as namely Hialu Trending
Ultramafic block. It is Cretaceous Ultramafic complex consist peridotit, harzburgit, dunit and serpentinit.
Mesozoic deep water carbonate and clastics associated with radiolarian cherts occur in the province.
Paleogene rocks are restricted to the northeastern part, but neogene rocks are much more widespread
in the province and form the Celebes Molasse.

Most contact between metamorphic rocks, ultramafic rocks, and Mesozoic sedimentary rocks are fault
contacts. The ultramafic rocks have been thrust over Eocene to middle Miocene carbonates in the
northeastern part.

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
II.2 Geology of Study Area

Geology of study area can divided in 2 parts. First part is ultramafic complex in southern part of study
area and second part is Pandua formation and a little ultramafic part in northern part. Pandua formation
is laying on ultramafic rock, and covering plain and low land near Lasolo Rivers.

Field observation is found that ultramafic rock is commonly serpentinization except on middle part.
Drilling and outcrops data is shown of saprolitic zone at hilly with high at 200 m above sea level. Float
quartz box work as silicification process is founded at the top of ultramafic hilly, this is indication of
fracture on dunite rock and it is suitable for nickel laterite process.

II.3 Characteristic Nickel Laterit Deposit on Concession Area

Drilling and outcrops data are shown that nickel laterite deposit at study area can divided into 3 groups,
as follows:

1. Nickel laterite deposit resulted from dunit alteration.


2. Nickel laterite deposit resulted from peridotit alteration.
3. Nickel laterite deposit resulted from dunit float rock alteration.

Cause of 3 groups above than make different laterite layer include of their saprolitic zone. Laterite
comes from peridotit alteration is very common in study area.

Limonite layer is found with iron oxides nodul, it is widespread around Paka Indah Village, Drilling record
is shown after 20 m under limonite layer is sandstone and conglomerate from Pandua Formation laying.
This is interpretation that Pandua formation is the basement of Paka Indah valley and Hilly has
arrangement from ultramafic rock that weathering and erosion going down to Paka Indah valley and
deposit there.

10

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Chapter III

Exploration Activity

III.1 Literature Study and Field Planning

Literature study is conduct to get of early information about situation of study area such how to reach
study area, social economic on study area, geology, and nickel laterite deposit potential.

Field planning is done for design of survey such as schedule survey, budgeting, person and material for
supporting so exploration activity can run smoothly.

III.2 Geology Mapping

Geology mapping is carrying out to known of morphology, variation and distribute of lithology,
mineralization, wide of concession area, prospecting area and others aspect. Mapping method is used
in this study is surface mapping, geology measured, and kinematic tracking GPS. Tools and equipments
are used such as working map scale 1: 12.500, geology hammer, geology compass, GPS, camera, plastic
sampling and others.

III.3 Sampling grab.

Amount of sampling that carry out for analysis as follows;

No. Sample Amount (bag)


1 Pit test -
2 Rotary drilling (Jacro) 38
3 Hand augers 243
4 Channel sampling 27
5 Soil sampling 6

11

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
III.4 Sampling Analysis

Chemical analysis method is using for known percentage of Ni, Fe, SiO2, CaO and MgO on sample. This
analysis is done at PT. Pertambangan Bumi Indonesia Laboratory with X-Ray Analysis.

III.5 Mining route planning

Mining route survey is conduct to know how of carrying of nickel ore after digging out. This method is
trace of potential access such as waterway or land route. The result of this activity as follows:

1. Rivers route :
Concession area has potential waterway such as Lalindu River, wide of Lalindu river about 50 –
300 m, depth 5 – 10 m, length to open sea about 32 Km, current river is 1,48 m/s – 2,42 m/s.

2. Land route :
Concession area has main road that can be useful to carrying out material to open sea.
Concession area is near coastal line that is others advantage.

III.5 Data Processing

Data processing is conduct at PT. Pertambangan Bumi Indonesia Office in Kendari. Data form is dividing
as 2 group as follows; 1. Drilling record, and 2. Analysis sampling record. Both data is storage with
confidential and safety by using restricted procedure. Drilling record and laboratory record will put in
computer for further analysis and core drilling and rock sampling will put in storage.

12

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Chapter IV

Exploration Activity Result

IV.1 Rock and Soil Sampling

This activity is done with geology mapping. This activity is conduct to know spread of source rock and
trend of laterite in concession area.

Rock sampling is done at outcrop of fresh ultramafic rock and soil sampling is done at red soil
appearance. Channel sampling is 27 points and soil sampling is 6 points.

IV.2 Drilling

Drilling is conduct after geology mapping. There are 2 drilling methods as hand augers and rotary drilling
(jacro). Hand augers is use if in the concession area is found laterite zone and rotary drilling is use after
hand augers result shown positive prospect.

This activity is done by 243 hand auger bore hole and 38 rotary drilling bore hole. Depth is varying
between 6 to 10 m for hand auger and 20 to 41 m for rotary drilling. Total depth approximately 932 m.
Locations drilling are spread as 59 points in northern part of concession area, 44 points in southern of
concession area, and 140 points in middle of concession area.

IV. Potential

Extensive laterite deposits drived from ultramafic rock contain potential of nickel laterite deposit in
concession area. The iron capping is normally restricted to exceptionally flat plain area. The ultramafic
rock is also containing chromite and some manganese. Ni content is vary between 0,98 to 2,29%Wt, Fe
content between 13,20 to 54,36%wt, and high of Cr and a few of Mn.

IV. Estimation Reserve

Concession area is Nickel laterite deposit from data interpretation as 92.376.000 Ton with 0,98 to 2,1%
Ni.

13

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
14

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
15

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
16

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
17

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
18

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
19

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
20

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
21

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Chapter VI

Closing

1. Source rock of nickel laterite in concession area is dominated of serpentinite rock from
ultramafic rock groups.
2. Bore drilling core result that saprolite zone is appeareance at 2 to 6 meter with avarage thick 4
m at morphology hilly with 25 – 100 m above sea level and 2 to 12 m with avarage thick 10 m at
steeply hills.
3. 243 hand augers bore result that laterite zone thick 6 to 10 m.
4. Concession area is Nickel laterite deposit from data interpretation as 92.376.000 Ton with 0,98
to 2,1% Ni.

22

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com
Bibliography

Bammelen, 1949, The Geology of Indonesia , martinus Nijhoff The Hague.

Sabarna, 2006 Laporan Penyelidikan Umum Pada Daerah Asera Kabupaten Konawe Utara Provinsi
Sulawesi Tenggara. PT. Pertambangan Bumi Indonesia.

23

PT. Pertambagan Bumi Indonesia. Batam Centre Industrial Estate Block A – 1.2.3 Batam Island Indonesia 29432
Tel: 62-778-467596, 62-778-467597 Fax: 62-778-462501 [email protected] www.pbimining.com

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