Austindo identifies new vein target in Banten prospect

Australian listed gold explorer Austindo Resources Corp reported on Tuesday that in addition to the decision to proceed with Cibaliung gold project Pre-feasibility study, the company had also identified new vein targets in its contract area.

Austindo said results from Scoping Study indicated that Cibaliung could be viable at a gold price of US$300/oz or above (using a 6.5g/t Au equivalent cut-off grade). Annual production of around 50,000oz Au equivalent for 6 years is envisaged.

According to the company, during January-March quarter Mobile Metal Iron (MMI) results had indicated new vein targets south and east of Cibitung. New targets are indicated at Cikeni and Rorah Kadal where mineralised quartz veins (best value = 14.4g/t Au) outcrop and east and southeast of Cibitung, where no veins have been recorded to date.

Austindo also completed detailed mapping over the Bukit Breksi prospect during the quarter.

The company said that evaluation of a number of high-grade epithermal gold projects has shifted from Java to the island of Sumatra was undertaken during the quarter and to date, no project has been secured as a suitable addition to the portfolio.

?Project generation work will continue throughout Indonesia and Australia during the course of the year,?said Austindo in its report.

Austindo holds 71 percent stake at Cibaliung gold project in Banten province, while the remaining 29 percent stake is owned by Aneka Tambang?s subsidiary International Antam Resources. (alex/robert)