Herald finds A$3.8 billion zinc-lead resources in North Sumatra
Thursday, February 1 2001 - 05:00 AM WIB
Perth based mining company Herald Resources announced that it had found zinc-lead resources valued at US$3.8 billion in the Dairi regency, North Sumatra.
"Initial resource estimates at Dairi confirms substantial tonnages of high grade zinc-lead mineralization, with an in-ground metal value of A$3.8 billion at today's prices," the company said in its financial report to the Australian Stock Exchange obtained by Petromindo.Com on Thursday.
It said the drilling in Dairi, which commenced in July and continued to mid-December last year, concentrated in the so-called Anjing Hitam sector on the southeastern flank of the Sopokomil/Bongkaras domal structure.
The company said it had thus far found 7.5 million tons of indicated zinc lead resources and 2.5 million tons of zinc-lead inferred resources in Anjing Hitam.
"Exploration potential remain high," the company said.
Herald Resources through its Canadian listed mining company International Annax Ventures hold 80 percent interest in the project while state owned mining company PT Aneka Tambang Tbk holds the remaining 20 percent.
The Dairi project comprises the Generation 7 contract of work (COW) covering 22,030 hectares and two Kuasa Pertambangan (KP) mining contract covering 13,640 hectares.
Herald also announced significant development in its Batu Besi tin project in Belitung Island where it had a cooperation agreement with PT Tambang Timah, the major Indonesian tin producer, to explore and develop two mining contract (KP) tenements of about 40,000 hectares on Belitung Island.
Herald holds 100 percent interest in the project while PT Tambang Timah is entitled to receive between 3 and 5 percent of royalty once the project start production.
Aside from Dairi and Belitung, Herald has also a contract area in West Kalimantan on the border of Malaysian's state of Serawak. The company stopped prospecting for gold in the area in 1999 and is now in the process of returning the property to the ministry of energy and mineral resources.
Herald has 80 percent shares in the project with the remaining 20 percent interest held by PT Indo Raya Citra Dirgantara. (Alex)