Kingsrose updates Indonesian gold/silver project
Saturday, April 25 2009 - 01:42 AM WIB
WAY LINGGO PROJECT
The Way Linggo Project is located in the Lampung Province of Southern Sumatra. The acquisition was completed on 27 February 2009. Kingsrose now owns an 85% interest in the project with the remaining 15% being owned by an Indonesian Partner.
Way Linggo is a substantial epithermal gold-silver discovery within Indonesia?s rim of fire. In particular the geological setting is associated with pull-apart basins, dilation jogs and splays along the Great Sumatra Fault.
Approximately 11,300m of diamond core drilling in 112 holes has defined a low-sulphidation epithermal vein system exhibiting high grade gold and silver. The ore system remains open at depth and along strike and has only been drilled to a 150m maximum vertical extent.
Within the main area of drilling completed to date, a total JORC compliant resource of 669,000 tonnes at 8.44g/t gold and 129 g/t Silver (or 10.6 g/t Gold equivalent) has been estimated by Snowden Mining Industry Consultants.
Mine development has commenced with adits cut at the 1020mRL and 1065mRL levels into the North Vein. To date development grades have substantially outweighed pre-mining estimates and 3,690 tonnes of ore grading 15.8 g/t gold and 222 g/t silver has been stockpiled in readiness for processing. In addition, alimak rising between these two levels has also returned grades substantially above pre-mined estimates.
A gold-silver process plant with a nominal 140,000tpa capacity is planned. Most major components have been procured and civil construction works have commenced. The plant will include a Merrill-Crowe zinc precipitation circuit. It is anticipated that the plant will commission late in the December quarter 2009.
The Way Linggo (PT Natarang Mining Contract of Work) mining tenure covers some 10,540 hectares located over a zone of structural complexity within the Trans Sumatra Fault Zone, the major strike-slip fault which extends the length of western Sumatra. All significant gold discoveries in Sumatra are associated with this fault zone and related to its development. Significant deposits in Sumatra and West Java in similar structural settings include Martabe (5.9M oz Gold), Pongkor (3.6M oz Gold), Lebong Tandai (1.4M oz Gold) and Lebong Donok (1.3M oz Gold).. The structural setting of Way Linggo is analogous with many other substantive gold mine environments in the world such as Fruta Del Norte (13.6 M oz Gold equiv.) in Ecuador.
Regional exploration within the Way Linggo Project has revealed numerous gold BLEG (Bulk Leach Extractable Gold) anomalies which warrant follow-up.
The Semung Kecil Prospect, located 2 km to the east of Way Linggo is the second priority advanced exploration target in the Contract of work area. Vein mineralization associated with fossil hot spring deposits was identified by previous operators within a mineralized zone some 200 m wide by 900 m long defined by anomalous gold in soils and geological mapping. Shallow drilling programmes by the previous operator failed to locate the source of the gold anomalies. The Semung Kecil prospect represents a large, structurally controlled, epithermal system which has not undergone significant erosion. Therefore the potential for high grade ?boiling zone? bonanza gold mineralization at depth is high.
Near mine exploration has discovered mineralized epithermal float rock with strong gold values at the Central Vein Zone, South Vein and Harto?s Vein areas. In addition CSAMT geophysical surveys have outlined possible parallel vein structures to the North Vein. All await drill testing.
Reconnaissance geological traverses following up gold anomalous BLEG sediments has discovered high sulphidation-style alteration in silicified breccias rocks in a distinct circular structure in an area approximately 3km northwest of the Way Linggo mine and this area, Way Mambu, shapes as an exciting high sulphidation target for a bulk tonnage low grade gold deposit.
Kingsrose has commenced the mobilisation of drill rigs to site to enable the testing of these and other targets and expects to be in a position to report on early exploration drill results in the ensuing quarter. (end of excerpt)