Austindo reports Indonesian mining exploration update

The following is excerpt from exploration update report of Australian miner Austindo Resources Corporation NL released on June 27.

 

The Company’s broader exploration objective is to discover additional high-grade epithermal gold-silver resources at Cibaliung and on the Company’s other tenements in Java.

 

The Company is targeting low-sulphidation epithermal gold deposits because typically they host bonanza-grade (>30g/t Au e.g. Gosowong) and high-grade (>10 g/t Au e.g. Pongkor & Cibaliung) ore shoots.

 

Cibaliung Gold Project, Banten (ARX - 89.15%)

A striking feature of epithermal vein-gold deposits is that ore-shoots are clustered. Many epithermal gold districts contain multiple ore-shoots giving rise to the expectation that additional ore-shoots within the Cibaliung Structure are likely.

 

Assuming that funding is available, the Company’s immediate exploration objective at Cibaliung will be to seek to discover new ore-shoots along strike through systematic drilling in three phases: Cibaliung South, Cibaliung Deeps and Cibaliung North.

 

The initial program will comprise up to 10,000 m of diamond drilling, which will take between 6-12 months using two drill rigs.

 

Trenggalek Project, East Java (ARX - 95%)

The Company commenced exploration work on the 7,586 ha tenement in mid-2006 and has conducted prospecting and mapping over the northern half of the tenement. The project area comprises prospective Oligocene-Miocene age volcano-sedimentary rocks similar to those at Cibaliung.

 

Previous exploration in the late 1990’s found high-grade float and traced it to narrow epithermal quartz vein outcrops at the Kojan, Buluroto and Sentul prospects. The very encouraging results from vein-float found in our recent work suggest the presence of multiple high-grade quartz vein sources within the tenement. A summary of the best results is presented below.

 

The aim of future exploration at Trenggalek is firstly, to locate these veins in outcrop and secondly, to scout drill test them starting by early 2008, and if results are encouraging to conduct follow up drilling. Alt permitting necessary to allow drilling to proceed is in place.

 

Pekalongan Project, Central Java (ARX - 95%)

The Company commenced exploration work on the 5,618 ha tenement in early 2006 and has conducted prospecting and mapping over the eastern side of the tenement Similar to Trenggalek, the project area comprises prospective volcano-sedimentary rocks.

 

Previous exploration in the 1990’s found high-grade vein-gold float surrounded by zones of low-grade gold-silver-lead mineralisation in quartz stockwork at the Kuning Prospect. Exploration will continue to investigate the tenement for high-grade vein-gold targets and aim to advance the project to a scout drilling phase by early 2008 with subsequent follow up drilling if justified by results.

 

Papua

Aisasjur Project - Anglo Strategic Alliance (ARX - 20%)

The Company has a 20% interest in a strategic alliance with the Anglo American Group (Anglo) to explore for large copper/gold porphyry deposits in Papua. The Company’s interest is fully funded by Anglo through to a development decision. The first project identified, Aisasjur, covers an area of 9,486 hectares on the Bird’s Head peninsula of West Papas Province. The project area lies within one of Indonesia’s young.

 

Tertiary volcano- plutonic arcs and is prospective for both porphyry copper-gold and epithermal gold mineralisation styles.

 

Eight holes were recently drilled by Anglo for a total of 3,347.9 m on the Aisasjur Prospect. Low-grade copper-gold mineralisation associated with broad zones of alteration and stockworking was intersected in one of the holes and indicates the presence of a blind porphyry system. The encouraging results of this program are the basis for a proposed follow-up drilling program. All exploration at Aisasjur is funded by Anglo. (end of excerpt)