Herald gets another N. Sumatra base metal exploration area

Australian mining firm Herald Resources Limited announced on Tuesday that it had applied for a base metal Contract of Work (CoW) over about 15,000 hectares in Sarkea District, North Sumatra, adjacent to its current zinc/lead project. Herald has 100 percent stake in the CoW.

The company said letters of recommendation had been sent by the respective Regents, whose regencies the area straddled, to the Ministry of Energy and Mineral Resources in Jakarta.

The company said reconnaissance to date had pinpointed the area with lead-zinc anomalism. A structured exploration program is expected to commence in the second quarter this year.

Herald is expected to commence construction of its Dairi zinc-lead project second quarter of this year. Zinc-lead production will come initially from Anjing Hitam deposit with reserves of 6.6 million tones @ 15% Zn, 9%Pb.

Herald has 80 percent stake in Dairi project with state miner PT.Tambang Timah holding the balance.

Elsewhere the company said it had withdrawn from cooperation to explore ton in Belitung island as its partner state tin miner PT.Tambang Timah has been unable to prevent the incursion of operators who are currently mining the oxidized skarn deposit for iron ore. (alex)