Finders Resources reports Q2 Indonesian activities
Friday, July 27 2007 - 03:17 AM WIB
The following is an excerpt from UK miner Finders Resources Ltd quarterly report released on July 26, 2007.
1. Wetar Copper Project, Indonesia
Finders Resources Limited ~72% and earning through expenditure
Feasibility Study Progress
The corporate target for the Wetar project remains the completion of a definitive feasibility study for a 20-25,000 tonnes per annum copper cathode operation at Wetar by mid 2008 and commercial production by 2009.
Pit Design
Revised pit optimisation studies by AMDAD of Brisbane were untaken to assess constant metal and constant mining options for the development of the Wetar Copper project using the current Resource Estimate block model (Hellman & Schofield Pty Ltd, February 2007). Initial estimates indicate a lower strip ratio of 0.57, equivalent to approximately 1 million tonnes less waste over the life of the mine from both the Lerokis and Kali Kuning deposits.
Exploration
During the period initial reconnaissance mapping and stream sediment sampling was undertaken in the tenements on the southern coast of Wetar Island. The main focus of the exploration program is to delineate the extent of mineralisation systems around known deposits which have similar styles of mineralisation to the Kali Kuning and Lerokis deposits.
Observed mineralization, outside of the drilled prospect areas, mostly occurs as limonite-hematite fracture fill in the dacitic tuffs or andesite rock units with base metal veins observed adjacent to the W6 prospect area, consisting of quartz-pyrite-galena veins within silicified andesites. Gossanous barite mineralization, similar in style to the mine feed of the former Billiton gold operations was observed in float in streams adjacent to the known prospect areas.
2. Ojolai Project, Indonesia
Finders Resources Limited ~72% with option
Jambi Oxide Gold Deposit: Metallurgical test work
Results from the test work are very encouraging. Milled composite samples representing CIP/CIL feed from representative of parts of the deposit with full oxidation showed gold recoveries of around 90%. Around 70% silver recovery was achieved from a silver-rich composite (~15g/t Ag). Samples of partially oxidised material averaged around 77% recovery for both gold and silver. All samples were insensitive to the range of grind sizes tested, suggesting that the Jambi deposit can be processed using relatively coarse grind sizes and a simple grind circuit.
The 12mm crush size tests of fully oxidised material indicated average gold recoveries of around 75%, although higher grade composites achieved better recoveries of up to 81.5%. A partially oxidised composite sample gave lower gold recovery of around 40%.
The test work indicates that acceptable gold recoveries are achievable at Jambi and that there is scope to consider heap leach treatment of marginal ore.
Tambang Metallurgy
Metallurgical test work of core material from the Tambang deposit is underway at G&T Metallurgical Services Ltd (Canada). Two composite samples are being tested with differing silver/base metal ratios , namely a high silver (150 g/t Ag), low base metal (0.7% combined) sample and high base metal (2.2% combined), moderate silver (80 g/t Ag) sample.
The first stage of test work which assess lead and zinc rougher concentrate production has resulted in approaximately 90% recovery of silver and gold into low grade base metal concentrates.
Prospect Evaluation
Finders has decided to postpone further drilling until a reverse circulation (RC) rig can be sourced (due late September). The rig will also be used for the Jambi Oxide deposit drill-out and this is expected in the final quarter of 2007.
Geochemical Sampling
An extensive program of soil and rock channel sampling has begun in the priority prospect areas. Intial results are encouraging with, at
1. Kencur; best channel samples of 12m @ 2.98 g/t Au and 6m @ 3.99 g/t Au in oxide material similar in character to the Jambi oxide gold deposit,
2. Jambi; a 225m wide soil anomaly with an average gold grade of 0.6g/t Au located approximately 100m south of the current drilling area. (end of excerpt)