Augur reports W. Java gold project update
Tuesday, September 28 2010 - 01:04 AM WIB
Operations Overview
During 2010, Augur?s primary focus has been on the advancing the Central Jampang Gold project. During the year, Augur entered into a two year option agreement to acquire 90% of the company holding the Central Jampang Gold project in Java.
Historically the Central Jampang Gold project has undergone significant drilling and exploration. Issues outside of the project impacted on the previous owner being able to raise capital to develop the project. Augur is undertaking drilling and geophysics to confirm both the main mineralised areas and the location and extent of previously identified geophysical targets, which remain largely untested.
Central Jampang Gold Project, South-Western Java
Option to purchase 90%
Target: Epithermal, near surface gold.
The Central Jampang Gold project is located approximately 150 kilometres south of Jakarta, on the island of Java.
The general geology of the area consists of Miocene/Oligocene andesite and dacite rocks overlain by recent volcanic tuffs. Historical mapping and drilling, indicates that epithermal gold bearing veins and hydrothermal breccias exist in the area.
The area covered by the UPs (Izin Usaha Pertambangans or mining business licences) has undergone limited modern exploration, with the exception of a three year program undertaken between 1996 and 1998 by a Canadian junior exploration company.
A major structural trend with numerous gold occurrences and zones of significant alteration within the project licence area has been identified. Historical drilling focused on a large alteration zone at Cigaru which covers the northern half of the licences and contains the Lipi and Puteran Simpang gold prospects. Mineralisation identified by the historical drilling remains open at depth and along strike.
Furthermore, the previous holder undertook geophysical surveys subsequent to their main drilling program and identified anomalies associated with the known mineralisation and four additional anomalies which either have not been drill tested or have had only limited drill testing.
During the year. Augur commenced drilling at the Lipi, Puteran Simpang and Lipi North prospects Historically, significant gold had been identified at Lipi and Puteran Simpang prospects.
Lipi Prospect
The Lipi prospect has been identified as the main gold bearing zone at Jampang. Historically the mineralisation has been identified over a strike length of approximately 470 metres with the southern extent open. Work by Augur suggests that the northern extent of mineralisation is also not closed off.
During the year, a total of five diamond drill holes were drilled within the Lipi prospect. Each hole intersected shallow gold mineralisation. In addition, anomalous silver, copper and zinc was detected
The drilling indicates that gold is present within a series of multiple quartz veins and hydrothermal breccias. These gold enriched zones appear to be near vertical and remain open at depth. Holes JADD10 and JADD11 were targeted on the central portion of the Lipi zone. Each hole returned wide zones of gold mineralisation. Hole JADD10 in particular was encouraging, returning 36 metres at 1.74 g/t gold and 0.89% copper.
The copper mineralisation in hole JADD10 confirms the occurrence of significant copper at Lipi. A three metre zone between 41.6 metres and 44.6 metres returned 2.67% copper within a zone of 36 metres of 0.89% copper.
While copper had been historically noted at Lipi, limited systematic analysis of the copper content had been made. Results are indicating that there is increasing coincidence of copper mineralisation with the gold mineralisation in a southward direction.
Puteran Simpang Prospect
The Puteran Simpang prospect is located approximately 640 metres north-northwest of the Lipi prospect. Gold mineralisation at Puteran Simpang trends in a north-northwest direction and is known to be associated with hydrothermal breccias. Zones of high grade gold have previously been reported from the Puteran Simpang prospect.
A total of five diamond holes were drilled at Puteran Simpang during the year. The best results were 10 metres at 2.01 g/t gold from 63 metres and a further 8 metres at 2.75 g/t gold in hole JADD2 from 78 metres.
Further drilling will be undertaken at Puteran Simpang during the next financial year. with the aim of defining a near surface resource at PLiteran Simpang.
Lipi North
The Lipi North prospect is located between the Lipi and Puteran Simpang prospects. The prospect includes recently exposed quartz veins.
Augur drill tested two targets at Lipi North during the year Hole JADD6 targeted shallow quartz veins and returned 0.5 metres at 56 g/t gold and 26.6 g/t silver from 7 metres
Holes JADD7, JADD8, JADD9 and JADD12 were targeting possible undercover vein systems in the east of the Lipi North prospect. The best result was in hole JADD8 which intersected 10 metres at 7.47 g/t gold and 6.44 g/t silver from 73 metres depth.
The results from Lipi North are very encouraging as they indicate that gold mineralisation occurs outside of the historically defined gold zones. Additional assessment of the geology and further drilling at Lipi North will be undertaken during the forthcoming year to determine the extent of the mineralisation at Lipi North.
Augur?s work to date highlights the significant potential of the Central Jampang Gold project area. Further work will be aimed at determining a JORC resource and commencing metallurgical testing of representative samples. (end of edited release)