G-Resources discovers new gold mineralised zone at Martabe

Hong Kong-listed gold mining firm G-Resources Group Limited announced on Monday the discovery of a new zone of gold mineralization at the Martabe Project, North Sumatra.

A drilling program to fully test the target zone is set to commence, the company said.

The prospect known as Horas, previously called Barani South, occurs within 3 km of the Martabe construction site and has not previously been drilled. Three diamond drill holes were recently completed as part of the ongoing exploration program and significant gold results were received from all three holes, confirming the potential of hosting a significant gold mineralised system.

?We are excited about this initial discovery at Horas. It confirms the tremendous gold potential of the Martabe district as a whole. We have now begun step-out drilling at Horas. It is our strategy to continue our aggressive exploration programme, to make further discoveries, to expand our resources and reserves and grow long term value for all stakeholders.? Owen Hegarty, Vice Chairman of G-Resources Group Limited said.

G-Resources? core starter asset is Martabe which has a resource base of 6.5Moz gold and 66Moz silver. Already in construction, Martabe is expected to commence production in 2011 with an annual production capacity of approximately 250,000 ounces of gold and 2-3 million ounces of silver at an estimated low cash cost of US$280/oz of gold. (alex)