BANYUWANGI (Indonesia Today) – Local government of Banyuwangi, East Java, expects to get 10% interest or golden share on Tujuh Bukit gold project, Bisnis Indonesia reported this morning.

Abdullah Azwar Pitu, Banyuwangi regent, said his local government needs to take benefit from this project for local people’s welfare and economic growth.

He however said his party is still waiting the settlement of internal conflict between PT Indo Multi Niaga (IMN) and its partner Australia’s Intrepid Mines Limited. IMN holds 20% interest in the project while Interpid holds 80%.

While Tony Allen Wenas, Interpid’s executive general manager, said his party welcomes Banyuwangi government’s proposal to get interest on Bukit Tujuh.

Back in December 2011, Intrepid have incorporated an expanded Inferred Resource Estimate at 1.7 billion tons at 0.41% copper and 0.46g/t gold, at a cut off grade of 0.2% copper.

Additionally, Intrepid is preparing a deep drilling activity which capable of penetrating 2,000m and is expected to start drilling in October 2012. (hans@theindonesiatoday.com)