Golden Peaks says assay results confirm wider mineralization
Wednesday, November 16 2011 - 04:30 AM WIB
The current drilling is part of the company's systematic evaluation of the project with an aim of increasing the size and improving the classification of the existing 43-101 Inferred Mineral Resource of 2.22 Mt at 1.3 g/t Au for 91,100 ounces of contained gold.
?The intersection in hole TND 077 is significant as it is the widest drill intersection yet obtained in the Tanoyan Project and is also the northern-most result the company has yet obtained from its drilling on the Sondana Vein,? the company said.
The assay results confirm and extend mineralization outlined by recent drilling previously reported by the company.
The company said the highest-grade mineralization, between 116.1 meters and 129 meters down-hole, is hosted by a thick, vein-breccia zone which is interpreted to be steeply dipping. This orientation will be confirmed by additional drilling in the Phase 2 program. The planned follow-up holes will test the down-dip and up-dip extensions of this zone.
An intense style of quartz-carbonate-sulphide stockwork veining was intersected in the hanging wall zone of TND077. This hanging wall zone returned consistent gold values throughout.
"Drilling at Tanoyan continues to provide consistently strong results. The high hit-rate is an indication of the persistent nature of the gold-bearing vein system," Golden Peaks' President Scott Emerson said.
In view of the positive results to date, the company's geological team is currently planning the next stage of drilling of approximately 10,000 meters which is aimed at delineating a mineral resource potentially sufficient to form the basis of a mining reserve and technical and economic feasibility study, said Emerson.
The company currently owns two drill rigs: Rig 1 is drilling the Sondana vein system and rig 2 has concentrated on the Modupola vein system which is located approximately 1 kilometer to the east of Sondana vein. Both veins are part of an extensive system of auriferous quartz veins, hosted by andesitic volcanics, which have been traced over a strike length of approximately 6 kilometers.
Currently, the company is active on four of its five Indonesian gold projects; drilling on the Tanoyan Gold Project, surface exploration programs on the Palopo Gold Project, the Kapa Kapa Gold Project and the Roko Gold Project. All the projects have easy access via paved and/or gravel roads and the regional infrastructure is good. (romel)