Augur?s first C. Java trenching results return gold mineralization
Wednesday, March 16 2011 - 03:32 AM WIB
The initial trenching results have returned significant zones of gold and copper mineralisation including 102 metres at 1.12 g/t gold and 0.15% copper. The trenching method used is continuous sampling with 2 or 4 metre composites, the company said.
To date, Augur has completed 1,415 metres of trenching at the Randu Kuning prospect with the aim of better understanding the geology and mineralisation in the area, it said.
Mineralisation at the Randu Kuning prospect consists of gold and copper bearing quartz-limonite, sheeted veins and stockworks hosted within diorite. The zone of mineralisation is associated with a large (400m x 300m) gold and copper soil anomaly above a highly magnetic body.
Managing Director Grant Kensington commented: ?These are our first trenching results from the Randu Kuning prospect and are very encouraging as the width of the intersections and the previous PT Oxindo drilling indicate potential for a large bulk-tonnage gold deposit?.
Previous exploration within the prospect carried out by PT Oxindo between 2009 and 2010 was focused on testing porphyry copper targets associated with a modelled magnetic high. Two deep diamond holes were drilled at the Randu Kuning prospect with both intersecting significant gold ? copper mineralisation at depth and which highlighted the potential for a bulk tonnage gold target at the Randu Kuning prospect.
A diamond drill program to test the surface mineralistion exposed in the trenching program and to test previous drill intersections of PT Oxindo has commenced.
An ongoing trenching program within the Wonogiri project will continue to test areas of mineralised vein systems identified by PT Oxindo. Results from this trenching will be used to further develop drill programs to test these additional prospects.
The project lies within the Sunda-Banda arc and covers and area of 3,928 hectares. The area is considered prospective for epithermal gold and porphyry copper-gold mineralisation.
Augur has an agreement to earn a 51 % interest of the project after the expenditure of US$1.5 million within 12 months from 15 December 2010 and can hold an 80% interest in the project with the expenditure of a further US$2.0 million with 24 months of 15 December 2010. No upfront payment or issue of shares was required.
PT Oxindo is a subsidiary of Minmetals Group who owns and operates a portfolio of world-class base metal mining operations, development projects and exploration fields. (romel)