Danusa agrees for stage 2 exploration at Trenggalek gold prospect
Thursday, April 27 2017 - 04:52 PM WIB
ASX-listed Arc Exploration Limited said Thursday that PT Danusa Tambang Nusantara (Danusa), a subsidiary of one of the largest contract miners in Indonesia, is currently managing and funding exploration work at Trenggalek gold and copper prospect in East Java.
"Danusa has agreed to continue with Stage 2 Exploration with a budget of US$ 1 million which will be implemented at the earliest opportunity following the conclusion of consultations with local communities." Arc said in a statement.
A total of 2,745 meters in a 20 hole diamond drilling program was completed in the first half of 2016, Arc said. These holes have tested for mineralised extensions within the large Sentul and Buluroto epithermal gold veins, which were previously tested with scout diamond drilling by Arc in 2010/11. "Review and interpretation of these results in conjunction which historic data is ongoing," the company said.
In the Singgahan prospect within the Trenggalek project, Arc said previous petrological studies on selected core samples indicated the occurrence of porphyry-style veining and alteration, with copper and molybdenum minerals and recent mapping in the area has identified porphyrystyle mineralisation at the surface. A Ground Magnetic survey consisting of 25.5 line km covering an area 1.5km x 1.6km was completed during the December 2016 quarter. Further geological mapping and ground reconnaissance was undertaken during the quarter. "These results combined with existingaeromagnetic data and detailed geological mapping will be used to define drill targets at Singgahan for the next phase of exploration to be undertaken at Trenggalek by Danusa after consultation with the local community," Arc said.
The Trenggalek Exploration IUP tenement is held by ARX?s Indonesian partner, PT Sumber Mineral Nusantara (?SMN?). The tenement, covering an area of 29,969 ha or about 300 km2, is valid until November 2018. The Company is in the process of renewing a forestry permit affecting 3,393 ha within the tenement area.
Editing by Reiner Simanjuntak