Australia?s Prosperity Resources commences C. Kalimantan copper-gold drilling

Australia-based junior resources exploration firm Prosperity Resources Limited announced Wednesday it had commenced the drilling of 2,000 meters of man portable diamond drilling on Rina prospect to earn 85 percent interest in 6th generation Contract of Work Masuparia Copper-Gold prospect in Central Kalimantan

Under a 12 month option agreement signed last June, Prosperity will disburse cash and shares for A$216,000 and an exploration budget of up to A$1,000,000, including for a diamond drilling of up to 2000 meters in return for up to 85 percent interest in the prospect.

The Masuparia concession, held by PT Pasifik Masao Mineral, covers an area of 335 square kilometers, next to the Mt Muro CoW area.

The Masuparia concession also lies within the same geological belt as the Kelian mine in East Kalimantan, which has produced more than 7 million ounces of gold since 1992.

The study by Leigh Rankin of Geointerp, a geologist with extensive experience on world class porphyry systems, indicates that the Rina Prospect discovered in the Masuparia may be a very large intrusive body of up to 7 kilometers long.

In 2001-2002, US-based Phelps Dodge Corporation carried out an exploration under a 12-month option agreement, focusing on the search for porphyry copper gold mineralisation. Phelps Dodge was successful in proving that porphyry copper mineralisation did exist at a depth within a geological setting analogous to the Cadia Hill- Ridgeway Deposit in New South Wales.

Rina Prospect drillhole RDH-02 intersected 310 metres @ 0.18% Cu and 0.32 g/t Au from surface, with the last 172 metres finishing in mineralisation averaging 0.26% Cu and 0.50 g/t Au. Subsequent geophysical surveying suggests that this drilling has only tested the periphery of a much larger system and one with potentially higher grades, which has not been drill tested. (alex)