Emperor Mines in E. Java copper, gold exploration deal

ASX-listed mining firm Emperor Mines Limited reported Monday it has signed an Alliance Agreement with a group of Indonesian and Australian investors to explore a large gold-silver-copper project in eastern Java.

The Alliance Agreement between Emperor Mines, Indonesian company PT Indo Multi Niaga and BVI company IndoAust Mining Limited sets out the framework for entering into a Joint Venture Agreement and undertaking further exploration on a property of approximately 116km2 located in the Southeastern portion of Java, the company said.

The agreement paves the way to a full Joint Venture Agreement, which would see Emperor spend up to A$5million over five years, to earn a 51% interest in the project. An option exists for Emperor to earn a further 19% interest in the project by funding additional exploration. Emperor may then fund Feasibility studies to a capped amount, subject to certain conditions including the obtaining of relevant permits and licences.

According to the company, the property has been previously explored and drilled by Golden Valley Mines and by Placer Dome during 1999/ 2000, with highly encouraging results.

?Historical drilling has defined a broad zone of approximately 2km x 2km of near surface Au-Ag mineralisation at the site, which will be the focus of ongoing drilling activity under the Alliance Agreement during the remainder of 2007 and early 2008,? the company said.(denny)