The Kucing Liar skarn deposit is located in the Ertsberg mining district, which also contains other skarn deposits and the Grasberg porphyry copper - gold deposit. The Ertsberg district is located in the province of Irian Jaya, Indonesia's easternmost province. Mining development began in the Ertsberg district in 1972 with the mining of the Ertsberg deposit. Daily production in the district now averages about 230 000 tonnes of ore, with the bulk of the ore coming from the Grasberg open pit and the balance from underground mining of skarn deposits. During 1998, 45 218 additional metres of drilling were conducted to delineate and understand the Kucing Liar orebody. The deposit was first intersected in drill holes in 1994 and then was intersected in underground workings located about 1000 metres from the discovery drill hole in 1995. Initially, the two intersections were thought to be different orebodies but are now realised to be different parts of the same orebody. The Kucing Liar deposit consists of magnetite - copper - gold replacement and skarn mineralisation in favorable Tertiary and Cretaceous units. The deposit is approximately 2000 metres in length and averages about 200 to 250 metres in thickness. The width varies from 400 to 600 metres. Drilling in 1998 was directed towards delineating the deposit on its NW and SE ends and to determine its down dip extension. Reserves for the deposit at the end of 1998 stand at 320 million tonnes at 1.4 per cent copper, 1.4 g/t gold, and 5.3 g/t silver. Many important questions remain to be answered concerning the relationship of the Kucing Liar orebody to the major faults in the district and to the Grasberg intrusive complex which contains the Grasberg orebody. Continued exciting developments are anticipated as work to understand the deposit by drilling and geologic study continues.