Avocet announces 1m oz resources at N. Sulawesi gold project
Tuesday, February 3 2009 - 11:56 PM WIB
Doup is located 25 kilometres northeast of the company's producing gold mine at North Lanut.
The initial JORC Code reported Mineral Resource, which includes both the Panang and Benteng prospects, totals 25 million tonnes averaging 1.2 g/t Au and containing 966,300 ounces of gold above a cut-off grade of 0.5 g/t Au.
?Doup is located in North Sulawesi in an area that is free of restricted forest status, which removes a major impediment to its development,? the company said.
The company will commence metallurgical test work on 2.8 tonnes of samples from Benteng and Panang shortly to evaluate the most viable process for extracting gold and associated silver. This will, in turn, define the economic grade cut off for open pit optimisation studies and Reserve reporting, as well as the scale of capital required to develop the Doup project, it said.
Infill drilling to 25-metre centres is scheduled to commence in July 2009 once the metallurgical investigation is complete with the aim of defining Measured, Indicated and Inferred Mineral Resources to JORC Code reporting standards designed to support Feasibility Studies in 2010. It will also evaluate several satellite prospects that are likely to add to the resource base.
Avocet holds a beneficial 60% interest in the project with 25% held by local shareholders and 15% held by PT Lebong Tandai, Avocet's partner in North Lanut. The project was acquired in 2007 from Mathanha Mining as part of the Banda portfolio. As part of the purchase agreement, Mathanha will receive 500,000 shares in Avocet Mining PLC triggered by the reporting of JORC Code reported Mineral Resources in excess of 500,000 ounces of gold. A second tranche of 500,000 shares in Avocet Mining PLC will become payable should the Mineral Resource increase above 1,000,000 ounces gold.(alex)