Exco Resources says sampling results confirm prospectivity of Bengkulu gold project

Australian mineral explorer Exco Resources NL said on Friday results from the recent stream, soil and rock float sampling at the Manna gold project in Bengkulu confirmed earlier indications of high levels of gold in streams derived from within a large epithermal-style alteration system.

Stream sampling has defined an area of at least 15 square km with greater than 1 part per million (ppm) Au in streams and numerous areas over 10 ppm in streams. Stream float from the anomalous catchment areas show widespread alteration with gossanous boulders and silicified, sulphidic volcanics with low grade Au mineralization from 0.2 ppm and up to 2 ppm. A small number of float or scree samples of epithermal quartz have also been collected from small side tributaries with grades up to 63 ppm Au, said Exco.

The results to date confirm the project area is host to a large epithermal gold system, said Exco in a statement.

?Field activities will resume immediately after settlement with a more detailed surface sampling and mapping program to define targets for drill testing. Drilling is planned to commence as soon as targeting is completed, currently planned for mid-August,? said A. Cooke, company?s managing director.

Exco, together with partner Danmar Explorindo acquires Manna project in March this year. The Manna discovery was made by an Indonesian prospector following up reports of alluvial gold in a previously unexplored area. Initial work by the prospector identified widespread epithermal and porphyry style alteration with associated gold and copper mineralisation.(alex)