Elray reports presence of gold in C. Kalimantan zircon project

Nevada-based junior exploration firm Elray Resources, Inc. reported on Monday the ?significant? presence of gold on its zircon gold joint venture in central Kalimantan, Indonesia.

The 9,000 ha project area has reportedly played host to traditional gold and zircon mining for more than 100 years with reports of locals gold take-out at around 2g/t, citing a Geologists report.

The gold and zircon are hosted in alluvial quartz sand and gravel deposits that appear to cover most of the concession area. Anecdotal evidence suggests that these deposits may be several tens of meters thick although traditional miners have only mined and worked the top 4-5 meters, it said.

The gold is extremely fine with high mass to surface area ratios and Elray plans for recovery by gravity separation methods with an 85-90% recovery being expected.

Although the Geologists report the presence of gold, the grades however are unknown although they are expected to increase with depth. At an estimated thickness of 20m plus, a small preliminary drilling program will be worked-up to provide some indication as to the distribution and grade over the total thickness of the deposit. (alex)