Augur reports Java gold project update
Friday, October 28 2011 - 03:13 AM WIB
Wonogiri Project
The Wonogiri project consists of two Izin Usaha Pertambangans (?IUPs?) or Mining Business Licences covering a total area of approximately 3,928 hectares in central Java, Indonesia. The IUPs cover areas considered prospective for epithermal gold and porphyry gold-copper mineralisation. Augur can earn a majority interest of up to 80% in the Wonogiri project.
Initial geological mapping indicated significant areas of extensively altered volcanics with multiple quartz veining. At the Randu Kuning prospect, quartz veining with a cumulative strike length of 2.3 kilometres has been identified.
During the quarter, Augur continued a drilling program focused on defining gold and copper mineralisation at the Randu Kuning prospect. Significant results were returned from most holes including hole WDD010 which returned 123.5 metres at 1.45 g/t gold and 0.2 2% copper from 44.5 metres depth and a further 65.0 metres at 1.03 g/t gold and 0.17% copper, hole WDD015 which returned 182.0 metres at 0.75g/t gold and 0.17% copper from 68.0 metres and hole WDD018 which intersected two wide zones of mineralisation including 136.0 metres at 0.48 g/t gold and 0.14% copper from 73.0 metres and a further 106.5 metres at 0.64 g/t gold and 0.10% copper. This latter interval ended in mineralisation.
The drilling to date indicates that there is a significant shallow gold-copper porphyry mineralised zone at Randu Kuning.
The extensive gold and copper mineralisation is associated with a mircodioritic intrusive porphyry body. This intrusive contains zones of extensive stockworking and sheeted quartz veins. Mineralisatton commences from surface and drilling suggests that the intrusive is a near vertical unit which appears to be widening with depth.
Surface trenching, and geological mapping are currently been undertaken at Wonogiri. Surface trenchin during the quarter has generally been undertaken in areas of alteration to the south of Randu Kuning. A total of 1330 metres of shallow trenches were mapped and sampled during the quarter. This brings the total of trenching at Wonogiri to 8,219 metres.
Trenching confirmed that a number of the known alteration zones in the vicinity of Randu Kuning contain anomalous gold. In the vicinity of Randu Kuning the results indicate a gold anomalous zone of over 1,400 metres in strike. This zone remains open. The in the trench results include a zone approximately 500 metres to the south of Randu Kuning where trench TGB05 returned 124 metres at 0.24 g/t gold and 1.8 g/t silver. Trench TGB04 which is located 60 metres directly north of trench TGB05 which intersected 24 metres at 0.41 g/t gold and 2.1 g/t silver. This zone remains open to the north.
Trench TGW01, located approximately 550 metres east-southeast of Randu Kuning returned 24 metres of anomalous gold on the east end of the trench. Results returned 24 metres at 1.23 g/t gold and 2,526 ppm zinc. This anomalous zone has been identified 50 metres to the south and remains open to the south and to the east.
The trenching results have returned moderate, but coherent anomalism of copper for a further 500 metres south of Randu Kuning with the zone open to the east and south.
Mapping has identified a new zone of alteration at the Melikan prospect which is located approximately 1,700 metres to the south of Randu Kuning. Further work will be undertaken at this site to determine the potential for significant mineralisation.
Two additional drilt rigs are be mobilised to site during the December quarter. One rig will test shallow epithermal targets in and around the Randu Kuning porphyry prospect, while the other targets deep drilling targets at Randu Kuning.
Jampang Project
During the quarter, Augur completed a reverse circulation (?RC?) drilling program at the central Jampang project. The focus of the drilling during the period was on targets in close proximity to the Lipi gold-copper zone.
Results for a total of 33 RC holes were received during the period with 21 holes intersecting anomalous gold. The most significant intersection was 16.0 metres at 1.96 g/t gold and 3.1 g/t silver from 15 metres in hole JARC110 and 9.0 metres at 1.58 g/t gold 0.22% copper and 6.7 g/t silver from 99 metres in hole JARC113.
Interpretation of the data received from the current drill program indicates that the mineralisation at Lipi and in the near surrounds of the Lipi zone is epithermal supergene enriched gold +/- copper.
Mineralisation appears to be concentrated along north-northwest structures within a corridor of quartz veining and extensive alteration.
Key features of the Lipi mineralisation are the shallow nature of the mineralisation, multiple zones of gold mineralisation, occurrence of very significant copper mineralisation in the south of the prospect and the steep dipping nature of the mineralisation.
Metallurgical studies of the Jampang deposit continue. Preliminary results have returned reasonable recoveries of gold and copper in the suiphide with up to 8 1.2% for gold and 84.5% for copper. Further studies are focused on improving copper concentrate grades. (end of excerpt)