Arc Exploration updates Cibaliung gold development project
Friday, September 26 2008 - 01:21 AM WIB
Total decline development to date has advanced to 1,160 metres.
The Vent Access cross-cut has intersected the southern end of the Cikoneng shoot at the 1132 mRL. Assay results received for continuous-chip samples taken across the Cikoneng shoot in this cross-cut returned an average grade of 7.2 g/t Au & 42 g/t Ag over an estimated true-width of 3.2 m. The grade & width of the shoot both exceed expectations from this section of the original resource model. These results may also up-grade this area of the Cikoneng shoot into pay-grade ore available for mechanised mining.
Stockpiling of mineralised vein material intersected in the Vent Access cross-cut has presented approximately 200 tonnes of potential ore to the ROM pad to date. Another 200 tonnes of low-grade mineralised wallrock is also stored on the ROM pad.
Cross-cut No. 1 has progressed along the 1120 mRL and is projected to be within a few metres of the upper middle section of the Cikoneng shoot Steel sets have been installed to provide additional support due to water ingress from abandoned artisanal workings. As a result of intersecting these workings, it has been possible to dewater the ore-shoot at this level and the water table has dropped considerably. Cross-cut No. 2, only recently commenced at the 1095 mRL, is projected to be approximately 26m from the upper-middle section of the Cikoneng shoot.
Development of the Cibitung decline has now resumed and is advancing well. The focus of underground development has now shifted to the Cibitung decline so that the two ore shoots can ultimately be developed in the most efficient way.
With underground development proceeding substantially in line with the Company?s expectations, it has now been agreed with the Redpath Group that their training and supervisory services will be discontinued. The Company now has an experienced team of underground miners and trained supervisors who will continue with ongoing underground development.
The information in this report that relates to Underground Sampling Results is based on information compiled by Mr. Brad Wake, who is a member of the Australian Institute of Geoscientists. Mr. Wake has sufficient experience which is relevant to the s44e of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.? Mr. Wake consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Project Funding
The Company is continuing its discussions with a number of parties to earn a direct interest in the project by funding the remaining development expenditure through to positive cashflow.
The Company is also in ongoing discussions with ANZ Bank regarding existing debt and hedging facilities. The Company has accepted an additional cost overrun facility in the amount of US$4 million offered by ANZ Bank and is now proceeding with documentation and satisfaction of conditions precedent to permit drawdown of this facility at the earliest opportunity. (end of release)