Herald announces excellent drilling results in North Sumatra

Australian mining firm Herald Resources Limited said its subsidiary International Annax Ventures Inc (IAV) had recorded "excellent results" during drilling in Dairi, North Sumatra in the first quarter of the year.

IAV together Indonesian state mining company PT Aneka Tambang (Antam) drilled two exploration holes at the Anjing Hitam area in the period, one of which contained 17.5 percent zinc and 9.2 percent lead, the company said in a quarterly report made available to Petromindo.Com.

IAV, which is 71 owned by Herald and is listed in Canada, holds 80 percent shares in the Dairi project, while Antam has the remaining 20 percent shares.

Herald earlier said it had discovered an indicated resource of 7.5 million tons in Anjing Hitam with zinc content of 16.7 percent and lead content of 10.3 percent.

Aside from Dairi, Herald is also doing exploration for tin on the Belitung Island in the Malacca Straits in cooperation with state tin mining company PT Timah.

The company said drilling activities at the Batu Besi area on the island continued to yield outstanding results in the first quarter of the year, including one hole containing tin content of 1.1 percent. The Batu Besi project is wholly owned by Herald but it has to pay between three and five percent royalty to Timah.

The company said its exploration activities went smoothly during the quarter, as it faced no security problems.

"Despite perceptions to the contrary, the Herald group has encountered little difficulty to date in conducting its operations in Indonesia.

"In particular, the North Sumatra region is ethnically stable, and very good working relationship have been established with the regional authorities and the local workforce," the company said. (Bodega)