Ashburton says initial drilling results at Obi gold project encouraging
Friday, September 9 2011 - 10:02 AM WIB
?The company has decided to release these preliminary results because they indicate that the likelihood of a large tonnage bulk mining economic gold resource existing at the Ambon prospect has been downgraded,? the company said in a statement.
This first batch of samples from the Obi diamond drilling program comprises 502 core samples from drill holes OAD 04 and OAD 05 (section 10 500 N) and OAD 06 (10 200 N), that is, only three holes from the proposed 10 - 12 hole program.
At present, the two drilling rigs are on holes OAD 07 and OAD 08. The second batch of samples is earmarked for dispatch from Obi towards the end of September.
These results do confirm the presence of a near-surface gold-bearing structure, and this augurs well for tenement holder, PT Eka Samudra Nusantara (PT Eka), which has an agreement with the artisanal miners to process their ore through a non-mercury gravity plant.
Under its Heads of Agreement with PT Eka, Ashburton is entitled to 50 percent of PT Eka?s profits from this operation. Construction of this plant is behind schedule, although all of the equipment has been purchased and is awaiting shipping to site from the port of Surabaya.
The multi-element (including Ag, Pb, Zn and Cu) results from the 502 core samples, and results from the 94 surface geochemical samples are still pending. (romel)