Austindo Q3 2003 Cibaliung gold project activities
Friday, October 24 2003 - 04:11 AM WIB
HIGHLIGHTSCibaliung Gold Project ? west Java, Indonesia
? Bankable Feasibility Study progressing on schedule.
? Exploration has discovered 13 new vein systems bringing the total number of vein systems in the area to 21.
? Strong interest expressed by possible project financiers.
CIBALIUNG GOLD PROJECT
The Cibaliung Gold Project is located in the Province of Banten in west Java, Indonesia, approximately 150 kilometres south west of Jakarta. The Company?s joint venture partner in the project is International Antam Resources Ltd, a majority owned subsidiary of the Indonesian Government?s mining company PT Aneka Tambang (Persero). The Company presently holds a 77% interest in the joint venture.
The major site activity during the Quarter has been being diamond drilling to obtain metallurgical samples and to provide infill intersections for resources upgrading. Four holes were completed at Cikoneng during the month being AC-55 and AC-56 (infill), and AC-57 and AC-58 (metallurgy). Significant assay results received were:
? Cikoneng Shoot (Section 5,260mN) Hole AC-55: 9.30m @ 10.51g/t Au and 125g/t Ag from 60.70m and 4.00m @ 4.12g/t Au and 5g/t Ag from 106.85m;
? Cikoneng Shoot (Section 5,140mN) Hole AC-56: 8.00m @ 11.80g/t Au and 138g/t Ag from 112.40m.
Drilling is continuing.
Strong interest in the Cibaliung Gold Project has been expressed by several potential providers of finance.
CIBALIUNG EXPLORATION
The Cibaliung Joint Venture?s recent exploration shows that the most prospective area for discovery of new economic gold shoots is in the south west quadrant of the KP where the premineral host rocks (Honje Formation) are located and where approximately 50% of this area has no cover of younger post-mineral tuffs. This area hosts the Cikoneng and Cibitung shoots, which are currently the focus of the Company?s Bankable Feasibility Study and covers the 6km2 area surrounding the Cikoneng-Cibitung shoots. This assessment is based on the proximity of the known deposits, the preferred host rock, the structural setting, erosion preservation and the discovery by the JV of numerous epithermal vein systems. There is an additional economic argument in that it will be relatively easy to develop any shoots located here and include them in a future mine plan associated with development of the Cikoneng ? Cibitung shoots.
As part of the resource estimate update completed in April 2003 for the Cikoneng and Cibitung orebodies a detailed structural model was prepared to assist resource estimation and this model has since been extended as an important tool for exploration targeting.
So far one new potentially economic vein deposit at Rorah Kadal and several anomalous zones have been identified in this area confirming that this portion of the KP has significant potential to host high grade low-sulfidation epithermal vein deposits with similar characteristics to Cikoneng-Cibitung. Two scout drill holes were completed at Rorah Kadal in early 2003 with narrow but encouraging results. It was decided to postpone further drilling of Rorah Kadal until field exploration over the greater adjoining area had been completed and assessed in 2003 so as to consider new targets and develop priorities for drilling. That is nearing completion.
The Company has completed detailed grid-based MMI soil sampling and mapping over an area greater than 1000 ha and immediately adjoining the Cikoneng and Cibitung shoots, which are currently the focus of the Company?s Bankable Feasibility Study.
More than 30 new gold in soil anomalies were located in the 2003 programme bringing the total number of identified gold in soil anomalies in this area to 54. Some have been followed up by trenching and prospect mapping. As a result of this work 13 new vein systems have been discovered bringing the total number of vein systems in the area to 21. A parallel program of detailed structural mapping was carried out to underpin development of an improved geological map of the area and this is now being assessed by a consultant structural geologist.
It is expected that in the near future drill targets will be prioritise and drilling of those ranked highest will commence before the end of the year.
CORPORATE
In accordance with the terms of the Joint Venture Agreement the Company?s interest in the Cibaliung Project increased to 77% at the end of the third quarter 2003 due to sole funding of joint venture expenditure.
The Company successfully raised $2.2 million by a Share Purchase Plan and $1.7 million from a Placement to major shareholders. The Company had cash of approximately $7 million at the end of the third quarter and in well positioned to advance its projects.
EXPENDITURE
Exploration expenditure during the quarter was A$596,725 made up of A$496,678 for the Cibaliung Project. (*)