Herald Resources: Dairi project update
Tuesday, September 7 2004 - 08:21 AM WIB
(1) Bankable Feasibility Study (BFS)
The BFS is continuing steadily towards its completion. Updates on two aspects of the BFS are reported below.
Resources
The resource extension drilling at the Anjing Hitam deposit was closed off in mid-August, so that a final Mineral Resource estimate could be carried out and mine scheduling and planning completed. The additional holes drilled, particularly on the NW extension, have added 10% to the Measured and Indicated resources from those previously announced in July. The new Mineral Resource summary (as advised by Resource Evaluations Pty Ltd) is tabulated below.
Anjing Hitam Deposit:
Mineral Resource Update August 2004
| Category | Million Tonnes | Zn % | Pb % | Ag % | Zn- Equivalent |
| Measured | 5.4 | 16.5 | 10.2 | 13 | 24.7 |
| Indicated | 2.3 | 14.7 | 8.7 | 11 | 21.7 |
| Measured +Indicated | 7.7 | 16.0 | 9.8 | 12 | 23.8 |
| TotalInferred | 0.3 | 10.3 | 5.4 | 11 | 14.6 |
| TOTAL | 8.0 | 15.8 | 9.6 | 12 | 23.5 |
The mineral Resource estimate was completed under the supervision and direction of Gerry Fahey who is a Competent Person as defined by the Australasian Code for the Reporting of Mineral Resources and Ore Reserves (JORC Code) 1999 Edition and who consents to the inclusion in this release of the matters based on his information in the form and context in which they appear.
Metallurgical Testwork
The main metallurgical program has been completed, with a bulk flotation test on a large composite sample of appropriately diluted ore assaying 15.7% Zn, 9.3% Pb, 15g/t Ag, 20.1% Fe. The results of this work were generally in accordance with the bench and locked cycle tests that were performed previously on different composites, and vindicate the overall process adopted. The concentrates produced from one of the cycles have returned assays of
| Concentrate | Zn% | Pb% | Ag g/t | Fe% |
| Zinc | 54.2 | 3.5 | 18 | 5.7 |
| Lead | 6.2 | 71.6 | 54 | 4.0 |
The overall grind was a little coarser than intended, which might have lowered the zinc grade slightly. The lead grade was significantly higher than anticipated.
(2) Exploration
Drilling is continuing on the Anjing Hitam NW extension, where the deeper than expected sub-basin tongue still has remnant massive sulphide with significant thickness. The updip extension is even thicker but is mostly oxidized and was not considered applicable for inclusion in resources the subject of the BFS.
At the conclusion of this drilling, the rig will be moved to the Basuki Lode, 1km NW of Anjing Hitam where previous trenching and newly discovered exposures of oxide zinc and lead mineralisation indicate that there may be a substantial deposit of oxide mineralisation in fault brecciated Jehe Dolostone. This has been karst-affected and may carry enriched metal precipitated from downward percolating solutions derived from leaching of the since-eroded massive sulpide deposits.
Contact: Michael P Wright, Executive Director. (*)