Finders updates Tambang drilling results from Lampung gold project

(09 September 2010)--Finders Resources Limited is pleased to announce the latest drilling results from its 72% owned Ojolali gold-silver project in Lampung, following the recently completed 18 hole 1717m program of infill reverse circulation drilling at the Tambang gold-silver vein system. The drilling program was designed to test for near surface mineralization with potential to provide additional feed for a start up mining operation based on the iambi oxide gold resource.

Highlights include:
? The identification of a new high grade gold-rich shoot that is completely open at depth with an intersection of 7m grading 5.62 g/t Au and 70 g/t Ag from 55m depth within a broader intercept of 24m grading 1.84 g/t Au and 38 g/t Ag and 0.56% Zn from 49m depth in TBGR 29

? Further high grade shallow silver intersections, including:
- 13m grading 184 g/t Ag and 0.41 g/t Au from 23m in TBGR 21,
- 20m grading 128 g/t Ag and 0.39 g/t Au from 52m depth in TBGR19
- 1m grading 658 g/t Ag and 0.52 g/t Au from 30m depth in TBGR 20

Finders Chairman, Russell Fountain, said the results have demonstrated the ability to expand the inventory of near-surface oxide mineralization at Ojolali and continue to emphasise the discovery potential of the project.

?This program tested approximately boom of the known +2km strike length of the Tambang vein system. The results have highlighted the continuity of wide zones of near surface gold-silver mineralization, and importantly demonstrated previously unrecognized potential for gold rich shoots within the system, as evidenced by the intersections in TBGR2S and 29, which are completely open at depth.

?This drilling, supported by ongoing surface geological mapping and trenching, has now defined the principal ore controls at Ojolali. We believe that we are looking at the very top of a large epithermal system, with great potential for additional discoveries at depth.

?Based on these Tambang results and the previously announced iambi drilling, we are now instituting a program of metallurgical test-work, including bottle roll testing, as a basis for a scoping study for development of a leaching operation based on both prospects,? he said.

The Tambang mineralization comprises a west dipping fault controlled swarm of quartz and manganese veins hosted mainly in a siltstone unit separating basement basalts from a locally tuffaceous andesitic rock sequence.

Holes TBGR14, 15 and 16 were designed to test a geophysical anomaly, and intersected only minor mineralization.

The remaining holes confirmed the presence of wide zones, with true widths ranging from 8 to 21m at a 0.5 g/t gold equivalent (Au +Ag/60)cut-off, of low grade gold and silver mineralization, with local high grade silver spikes to 658 g/t.

In addition, high grade gold (7m @ 5.6 g/t Au, 70 g/t Ag) was intersected from 55m depth in TBGR29, indicating potential for significant gold rich zones within the generally silver dominated Tambang vein system. Additional drilling will be required to evaluate this potential.

The gold and silver values are accompanied by significant zinc and lead below the base of oxidation, which extends to around 25m depth within the vein zone. The company plans to carry out a program of metallurgical testing using material from this drilling, to check recoveries of both gold and silver across the oxide-sulphide boundary at Tam bang prior to follow up drilling.

Assays were undertaken by the Intertek Jakarta laboratory, using 50g fire assay (Code FA51) for gold, and ICP for other elements. (end of edited release)