Australia?s Oropa reports Q3 Indonesian mining activities
Monday, November 1 2004 - 02:24 AM WIB
HIGHLIGHTS
CORPORATE
o Capital raising of $690,000 via a placement of 38,333,333 shares at 1.8 cents per share to financial institutions and sophisticated and offshore investors
PUNGKUT GOLD PROJECT
o Twelve month extension to Contract of Work approved by Ministry of Energy and Mineral Resources
o Completion of ground magnetic survey over the high grade Tarutung gold prospect
o Drill rig demobilised from Sihayo to commence drilling at Tarutung during the December Quarter
1. CORPORATE
Subsequent to 30 September, the Company raised $690,000 for working capital purposes via a placement of 38,333,333 shares at an issue price of 1.8 cents per share to institutional investors led by Macquarie Bank Limited, Findlay & Co and offshore investors.
The funds raised will be used primarily for the soon to commence drilling program at the Tarutung prospect at the Pungkut gold project in Indonesia.
The Company has received notification from the Berlin Bremen Stock Exchange in Germany that its securities have been granted a listing there. This is the second German stock exchange that is trading Oropa?s securities.
German investors have been very supportive of Oropa?s stock and they collectively hold a significant shareholding in the Company.
2. REVIEW OF OPERATIONS
Pungkut Gold Project, Sumatra (75%)
The Company is presently undertaking a detailed study of the geological controls influencing the gold mineralisation of the Sihayo 1 North/Sambung trend (+/- 1.5km) which currently hosts an inferred resource of 609,000 oz Au (7.1Mt @ 2.7 g/t Au. The diamond drill rig that was used at Sihayo is being moved from the northern block to the highly prospective Tarutung prospect, some 55 km to the southeast of Sihayo.
A regional remote sensing litho-structural interpretation of the entire Pungkut Contract of Work (?CoW?) and immediate surrounds was completed during the quarter. This work has greatly enhanced Oropa?s understanding of the mineralisation controls at Sihayo and Sambung and the Company intends to undertake further drilling there in early 2005 subsequent to the completion of the current study. New targets generated through this study will be followed up in due course.
Tarutung
Tarutung, located in the southern block of the Pungkut CoW is one of a number of exciting prospects where high grade gold values have already been encountered. The prospect hosts an epithermal vein system with high grade gold and silver values in surface float, rock chip and channel sampling. Geological mapping has delineated a 1.3km strike corridor of argillic clay alteration, within which the Tarutung vein system is directly observable over 350m.
The strike extent of this vein system may be significantly longer.
Exploration activities during the September quarter were largely focused on the Tarutung prospect. Field activities during the quarter included the construction of the field camp, completion of a GPS / tape and compass survey grid, detailed geological mapping, completion of a ground magnetic survey and the commencement of a soil sampling program. This fieldwork was designed to assist in the planning of a drilling campaign at Tarutung during the December quarter.
Ground Magnetic Survey
Geoservices Exploration of Bandung, Indonesia were contracted to undertake the Ground Magnetic survey and initial data processing.
In excess of 70 survey line kilometres were completed between 25m and 50m line spacings in a grid east-west orientation, perpendicular to the observed strike direction of the Tarutung vein system.
Initial results indicate the presence of several major structural features, with empirical spatial association to observed gold mineralisation.
Further image processing is to be conducted in Perth during the December quarter.
Of particular interest is the delineation of a structural feature to the east of, and parallel to the Tarutung vein system. This feature will also be field checked and possibly drill tested during the December quarter.
Soil Sampling
A detailed soil sampling program commenced over the Tarutung vein system this quarter. Samples are being collected from residual ?C? horizon material at nominal 25m x 100m spacings with results still outstanding.
Drilling
The drill rig was demobilised by helicopter from Sihayo in October in preparation for the commencement of drilling at Tarutung. First pass drilling is budgeted to include approximately 1200m of HQ and NQ diameter coring, focusing on the exposed Tarutung vein system between Air Kering and 350m grid south were a recent land slip has exposed strong alteration and veining. Logistics associated with the commencement of drilling are well in hand.
During the quarter, a 12 month extension to the CoW was applied for and approved by the Ministry of Energy and Mineral Resources.
This is the first extension of exploration under the CoW to be applied for and it extends the exploration period until 6 October 2005. Further extensions will be applied for in the future as appropriate.
Project Evaluation
Owing to the Company focusing on a fund raising program to progress the Pungkut gold project in Indonesia, minimal project evaluation was undertaken during the quarter. (end of report)