CCG to acquire Banten gold project

London Stock Exchange-listed mining firm Central China Goldfields plc (CCG) announced Tuesday that it has signed an exclusive option agreement over the Cikoleang Gold Property in the Banten Province with a local company PT Fino Bersaudara with a view to entering a definitive joint venture agreement within six months.

The company said it would conduct conduct extensive due diligence before committing its resources under the joint venture. If the deal goes through, CCG will own 75 percent stake at the joint venture company and will solely fund first US$2 million of expenditure.

?The early indications are positive and it is the current intention that the Company will seek to expand, define and fast track this gold property towards early production,? the company said.

Cikoleang Gold Property is located approximately 100km southwest of Jakarta, near to the presently closed Cikotok gold mine which has been operated since the Dutch colonial times until recently when it was operated by PT Aneka Tambang.

Cikoleang has areas of exposed intermediate sulphidisation epithermal veins, up to 1.5m wide, reporting high gold values of up to 77 grammes per tonne (g/t).

Additionally one area identified by Central China Goldfields plc has 1m wide lead-zinc-silver veins running up to 35% zinc.

Grab samples of ores exploited by local artisanal miners, reviewed by Central China Goldfields plc, returned between 4.12g/t to 22.2g/t gold. Veins sampled returned between 1g/t to 3g/t gold. High amounts of silver are associated with these rocks in places running up to 398g/t. A single sample of lead-zinc-silver ore returned 24% zinc and 105g/t, silver, it claimed.

So far the veins at Cikoleang are reported to be 300 metres long with veinn ranging from under 1m to 1.5m width, it added.(alex)