Centurion Minerals targets Indonesia's next major gold discovery

Canadian-based company Centurion Minerals has its sights set on the next big Indonesian gold discovery.

There aren't many better places to be exploring for gold either. The Fraser Institute ranked Indonesia sixth in its 2009 survey of countries with the most "Geological Prospectivity."

Centurion has leveraged its long experience and local connections into the acquisition of a big stake in Indonesia - a country that has a set up very high barriers to entry into its vast natural resources.

Centurion has acquired a 10.8% interest in the Miwah epithermal gold deposit - one of the largest gold discoveries in Indonesia made in the last few years - through a deal with its local partner. The Miwah deposit holds an estimated 3.28 million ounces of gold equivalent (at 0.2 g/t gold cut off) and is still being further explored.

Centurion has also amassed multiple large land claims in the emerging district-scale gold exploration region that surrounds the Miwah deposit. Centurion has secured 70,000 hectares of property adjacent to and in close proximity to the Miwah deposit. The properties include multiple mineralized epithermal gold and gold-copper porphyry targets.

Centurion isn't wasting any time developing its prospects either. It has already completed much of the geological reconnaissance necessary to hone in on the most prospective drill targets. Drilling is planned to start by the middle of 2011.

Put it all together and it's clear to see Centurion is positioned to rapidly advance its numerous projects in this emerging district-scale opportunity. Meanwhile, it has a relatively modest value of approximately $27 million. But if exploration results are similar to what other companies in the area have achieved, Centurion is going to be attracting a lot of attention very soon.

Centurion's management team has extensive knowledge and experience in Indonesia. It has already put its unique advantages to work. Centurion has leveraged its relationships into the acquisition of a stake in the Miwah discovery and a sizeable land stake surrounding it in the Pidie Regency of Aceh Province on the Indonesian island of Sumatra. Once you break down this structure into its basic elements, you will see Centurion's development opportunities very clearly.

Centurion's interest in the Miwah deposit is a critical starting point. The Miwah deposit is directly owned by East Asia Minerals (85%) and PT Bayu Kamona Karya (15%), a local Indonesian company. Centurion has a first right of refusal to 72% of the income generated by PT Bayu Kamona Karya. The deal gives Centurion a net 10.8% interest in the Miwah deposit. The net 10.8% interest currently represents more than 300,000 ounces of gold based on the most recent resource estimate for the Miwah deposit.

The way the deal is structured, Centurion and PT Bayu Kamona Karya do not have to incur any exploration costs for Miwah. Those are paid for by East Asia Minerals, the project operator. Centurion and PT Bayu Kamona Karya are only responsible for funding their interest in the project once a feasibility study is complete and additional capital is required for mine construction.

Centurion has a much bigger position in the region than just a stake in one of Indonesia's biggest gold discoveries of the past few years.

Centurion has staked more than 70,000 hectares of land claims surrounding or adjacent to the Miwah deposit. These claims offer a lot of exploration potential because the Miwah discovery is just one of potentially multiple deposits in this emerging gold exploration district.

Precious metals consultant and advisory firm GFMS has proclaimed: Indonesia has some of the best geological prospectivitiy in the world and offers great potential for future exploration and development work. In a recent survey Indonesia's potential mineral index, in terms of geological prospectivity, was equal to that of Russia, Peru, Chile and Nevada.

An analysis of Centurion's properties, geological reconnaissance, and past data confirm the kind of potential GFMS sees in the region. Early exploration efforts in the district have confirmed the areas surrounding Miwah have potential more significant discoveries.

For example, East Asia Minerals has already discovered additional gold at the Sipopok prospect located between the Miwah deposit and the Centurion's Halimon property border. In January 2011, East Asia reported it had drilled two holes on the Sipopok prospect. Both holes intercepted gold. Centurion has also detected multiple gold epithermal and copper-gold porphyry anomalies at surface across its surrounding properties.

This is where Centurion offers significant exploration upside potential because of its sizeable land package. (ends)