Diadem Resources and Andriant Trading and Engineering agree on Belitung project
Friday, August 25 2000 - 03:30 AM WIB
Herald Resources Limited is pleased to announce that it has entered into an agreement with Diadem Resources Ltd of Canada, and PT Andriant Trading & Engineering of Indonesia on a granted Contract of Work ("CoW"), and two initialed applications for CoW's on Belitung Island. These projects, which contain the old Kelapa Kampit hard rock tin mine, adjoin Herald's existing Batu Besi project area, where Herald is also exploring for base metals in its own right. A total area of approximately 119,500 Ha is involved.
Under the terms of agreement, Herald may earn a 70% interest in the Diadem projects by expending $3m US on exploration and development. Prior to entering into a formal JV agreement, a six month due diligence period, with minimum expenditure of US$100,000 will be conducted.
Belitung Island is noted for its tin production, mainly from alluvial operations. Exploration, mainly conducted by BHP Minerals, and the Preussag Co of Germany who operated the Kelapa Kampit hard rock tin mine in the 1980's, located significant base metal values while exploring for tin. Later, soil geochemistry and IP surveys conducted by Preussag detected anomalism over 7.5km of strike. Significant intercepts from BHP/Preussag drillholes and underground cross-cuts include 9.5m @ 10.5% Zn, 2.0% Pb; 20m @ 11.6% Zn, 4.6% Pb; 10m @ 10.6% Zn, 7.7% Pb, 115 g/t Ag (all estimated true widths).
Dedicated drilling for base metals in the 1990's over 1.5km of this strike has resulted in a number of significant lead / zinc / silver intercepts including 5.3m @ 7.1% Zn, 2.7% Pb, 26 g/t Ag; 6m @ 5.1% Zn, 2.9% Pb, 89 g/t Ag; 12.0m @ 2.1% Zn, 7.2% Pb, 48 g/t Ag; 5.0m @ 13.3% Zn, 6.4% Pb, 78 g/t Ag (all estimated true widths).
Although tin is of interest, the base metals are regarded as the primary target. This is due to the fact that they may have similar stratabound depositional style to the Herald Group's exciting Dairi project in North Sumatra, occurring in similar style and age host rocks.
The addition of these tenements to Herald's existing Batu Besi holdings provides about 30km of strike of magnetic linears with the potential to host lead-zinc-silver and tin-copper mineralisation.
The due diligence will involve the drilling of six holes, which shall commence very shortly. Herald's 100% controlled adjacent Batu Besi project will also be drill tested during the same campaign.
Further information contact: M P Wright, EXECUTIVE DIRECTOR (*)