Finders completes initial phase resource drilling at Lampung gold project

Australian mineral explorer Finders Resources Limited announced on Monday that it had completed initial phase of resource drilling at the Jambi oxide gold-silver project in Lampung province has been completed.

96 Reverse Circulation ( RC) drill holes have been completed at Jambi for a total of 8297m of drilling, complementing the 34 diamond holes completed by Finders during 2006, the company said.

According to the company, the results confirmed continuity of low-grade mineralization in the central mineralized area, provided evidence of higher grade feeder vein system at depth and defined a coherent zone of high silver values through the south?eastern portion of the drilled area.

Final or preliminary gold assays have been received for all holes, while silver assays are still awaited. Heliman and Schofield Pty Ltd have been retained to undertake a new resource estimate, which is targeted for completion by early May, subject to timely receipt of outstanding silver assays, the company said.

?These results consolidate the excellent results reported from the initial part of this drill program. We anticipate a significant increase in the core Jambi resource from the previously reported 100,000 Oz gold Inferred Resource. Furthermore, we consider that the failure of this program to establish the limits to the Jambi system, laterally or at depth, highlights the significant potential for additional discoveries, " Russell Fountain, Executive Chairman of Finders said.

Pending this review of the resource potential of the central Jambi zone, the drill rig has been transferred to Finders' Wetar project to complete a two month sterilization and resource upgrade drill programme. Afterwards, Finders plan to initiate a follow up program at iambi to assess the southern and north-east extensions of the deposit.

Finders has 72 percent stake in the Ojolali gold project, where Jambi prospect is located. (denny)