Drilling to commence on Palopo Gold Project

Vancouver-based junior exploration firm Golden Peaks Resources Limited reported on Thursday that Reliance Resources Limited has been working towards the commencement of drilling at the Palopo Gold Project in South Sulawesi.

Golden Peak is in the final stages of completing it's 100% acquisition of Reliance.

Extensive site works and preparatory activity is completed and an initial 5,000-metre drill program is planned, the company said. Reliance owns a 90% interest in the Palopo property.

This drill program will be the first phase of drilling at Palopo by Reliance. Initial drilling was undertaken by the Indonesian state mining company, ANTAM, in 1999 - 2000 with 11 holes completed (3,119 metres). The second campaign was completed by the previous owners of the property, Avocet Mining PLC (Avocet), totalling 12 diamond drillholes (1,831.5 metres).

Previous work at the Mangkaluku Prospect identified at least three principal mesothermal gold-bearing vein zones: Western, Central and Eastern Zones. Each zone contains multiple quartz-sulphide veins +/- Au with individual veins having strike-lengths up to 500m and varying between 0.5 and 5 metres in width.

The initial focus of the current drill program is to follow-up high-grade intersections from previous drilling to provide a framework for recognizing controls of high-grade mineralisation within the lode systems, the company said.(alex)