G-Resources: Martabe project update
Thursday, October 27 2011 - 09:00 AM WIB
Details
The Horas Mineral Resource Estimate provided here has been produced on the basis of results from 41 diamond drill holes. The majority of these holes were drilled by G-Resources in the period December 2010 - August 2011.
The Horas Deposit is a high sulphidation epithermal deposit similar to the other Martabe deposits at Purnama, Ramba Joring, Tor Uluala, Uluala Hulu and Barani. Gold-silver mineralisation is composed of a core of higher grade correlated with intense silicification, and a lower grade halo, correlated with lower intensity silicification and strong clay alteration. Geological structures have been identified which are interpreted to control the broad distribution of both gold-silver mineralisation and alteration.
The Horas Deposit outcrops at surface and dips to the west at about 30? with strike length of approximately 600 metres, average true width greater than 20 metres and known depth to of 250 metres. Horas is open at to the north and at depth. The high grade Horas Barat Prospect to the west (Reported on 6 October 2011) may represent a higher grade feeder zone or a parallel but separate gold-silver system.
This October 2011 Horas Mineral Resource Estimate was completed by a team consisting of G-Resources‟ site personnel, independent geological and resource estimation consultants, and resource specialists from Cube Consulting Pty Ltd, Perth, Western Australia (www.cubeconsulting.com.au).
The estimate utilised geological domains interpreted from detailed geological logging and assaying. Domains were created accounting for lithology, structural features and alteration; these were constrained by assay results at cut-off grades determined by statistical analysis. Gold values were estimated into a 3D block model within these domains by the indicator kriging method, and silver values by the ordinary kriging method. Geological domains were created for sulphide sulphur, copper and arsenic and values for these elements estimated by the ordinary kriging method.
Preliminary metallurgical analysis was conducted by comparing the ratio of cyanide soluble gold assay to gold by fire assay. This work indicates that the deposit is likely to be refractory in nature because it is largely composed of primary mineralisation style. Initial metallurgical test work using several different methods (previously reported on 19 October 2010) indicated that recoveries of around 80% have been obtained on primary mineralisation from the Purnama Deposit. In light of these results, further work is underway to determine optimal processing options for Horas and other primary components of the Martabe deposits.
The Horas Mineral Resource contains an estimated 400,000 ounces of gold and 880,000 ounces of silver at an average grade of 0.8 g/t gold and 1.7 g/t silver. A total of 41 diamond drill holes for 8,948.3 metres of drilling were used to define the initial resource. Horas remains open in several directions.
This 27 October 2011 Mineral Resource Estimate is the final of three resource estimates planned for 2011 and follows programs of diamond drilling to delineate initial resources for the Purnama Timur, Tor Uluala and Horas Deposits.
This Resource Statement brings the additional resources discovered since G-Resources acquired Martabe to 1.96 million ounces of gold and 11.98 million ounces of silver. G-Resources Group?s JORC compliant and classified Mineral Resources as at 27 October 2011 are estimated to contain 7.86 million ounces of gold and 73.48 million ounces of silver.
Other Exploration Programs
Exploration work continues throughout the Martabe project area. G-Resources is aggressively exploring close to Martabe and throughout the company‟s 1,639 square kilometer Contract of Work (?COW?) area. Five helicopter supported LF-70 diamond drill rigs are currently engaged in drilling programmes at Martabe. A team of 15 geologists is in place, ensuring the ability to generate and test exploration targets for both epithermal gold/silver and porphyry copper/gold in the COW.
Close to the Martabe plant site, drilling at Purnama Dalam continues to target strongly silificifed zones which are visually similar to high grade mineralisation in the Purnama Deposit, at depths of up to 650 metres below surface. Assay results from the most recent diamond drill holes are awaited.
At Tor Uluala, drilling continues to extend the deposit to the north. Drilling at Tor Uluala is also focusing on extending the mineralized zones that form the September 2011 Tor Uluala Resource Estimate. This work is expected to result in an increase to the Tor Uluala Mineral Resource Estimate in the first half of 2012.
On the Martabe COW, an initial drilling program has been completed at the Baning Prospect 5km North West of the Martabe project site. Results from a three hole program returned individual metre wide values up to 0.57 g/t gold, associated with 2 to 5 metre wide, subvertical, gold bearing shear zone. Current work is focused on determining the potential for a large scale source to this mineralisation.
Drilling has commenced at the Tango Papa Prospect, approximately 20km north of Martabe. This is targeting a 500m long, outcropping high sulphidation epithermal gold/silver system, which has a coincident gold soil anomaly and airborne EM resistivity anomaly.
About Martabe
The Martabe project is located on the western side of the Indonesian island of Sumatra in the Province of North Sumatra, in the Batangtoru sub-district. The project is established under a sixth generation COW which was signed in April 1997. The COW defines all of the terms, conditions and obligations of both G-Resources and the Government of Indonesia for the life of the COW.
Martabe, with a resource base of 7.86 million ounces gold and 73.48 million ounces silver, is G-Resources Group‟s core starter asset, around which a globally competitive, Asia-Pacific focused gold company will be built. Already in construction, Martabe is expected to commence production from the Purnama pit in the first quarter of 2012 at a rate of 250,000 ounces per annum of gold and 2-3 million ounces per annum of silver at an anticipated low cash cost of below US$250 per ounce of gold.
G-Resources is seeking to rapidly grow production to more than one million ounces of gold annually through exploration of the large and highly prospective COW area and through acquisition of other quality gold assets. The Martabe project enjoys the strong support of the Indonesia Central, Provincial and Local Governments and the nearby communities of Batangtoru. (end of edited release)