Augur says initial drillings confirm Jampang gold mineralization

ASX-listed firm Augur Resources Ltd reported on Thursday that the results from the first two diamond drill holes at its Central Jampang gold project in south-western Java have been received.

The holes JADD1 and JADD2 were drilled within the Puteran-Simpang prospect which is approximately 400m to the north-west of the main Lipi gold prospect. Initial plans had been to commence the drilling at the Lipi gold prospect, however a delay in gaining access to the sites resulted in an opportunity to commence drilling at the Puteran-Simpang prospect, it said.

The initial drill results confirm the presence of significant shallow gold mineralisation within the Puteran-Simpang prospect. The results also indicate that there is continuity down dip within the mineralised zone which is very encouraging, it added.

Hole JADD1, intersected a number of mineralised zones with the most significant intersection of 8 metres at 1 .31g/t gold, 5.31 g/t silver and 0.47% zinc from 49m. This included 1 metre at 6.95 g/t gold, 27.4 g/t silver and 1.55% zinc.

Hole JADD2 was drilled approximately 25m to the west of JADD1, and targeted the down dip extension of the mineralised zone intersected in hole JADD1. Hole JADD2 intersected a broad zone of gold mineralisation including 8 metres at 2.75 g/t gold, 14.29 g/t silver, 0.23% copper and 0.43% zinc.

The mineralisation appears to be associated with breccias, quartz stock-working and an andesite-dacite contact zone, it said.

Hole JADD3 has been completed, logged and partially sampled. Results are expected within the next 10 days. Drilling of hole JADD4 has commenced and is expected to be completed within the week. Holes JADD3 and JADD4 have been drilled to the north of holes JADD1 and JADD2 and are testing for strike extent of the mineralised zone.

Augur has planned a detailed drill program with the aim of defining an initial JORC compliant resource by late 2010 ? early 2011. The resource is expected to include mineralisation within the Lipi and Puteran-Simpang prospects.

Augur is also planning for a substantial RC drilling program to test a number of geophysical and geochemical anomalies outside of the known areas of mineralisation. This program is expected to commence in the near future.

Augur has a 2-year option to purchase 90% of PT Golden Pricindo lndah, the company holding the licences covering the central Jampang Gold project. (kanti)