Normandy Mining discovers gold in N. Sumatra

Australian gold miner Normandy mining said Thursday it had made major gold discovery in its Martabe project North Sumatra, where it had 90 percent stake.

The company said the Martabe project had been confirmed as a major disseminated epithermal gold discovery, with several deposits identified within a 7km by 2km area.

The project is located close to the Trans-Sumatra highway and the national electricity grid system, about 40km inland from the port of Sibolga, northern Sumatra.

The Purnama deposit has been drilled to 100m centres or less and is likely to contain oxide and transition mineralisation at average grades of 1.5g/t to 2.0g/t.

Another strong zone of mineralisation, 60m to 75m thick, has been discovered at Gerhana, 3.5km north of Purnama. Three drill holes completed to date returned 113m at 4.1g/t, 71m at 4.8g/t and 40m at 2.0g/t (all intersections from surface).

Similar mineralisation of lower grades (1g/t to 1.5g/t) is partially tested at Baskara, Kejora and Pelangi. The Pelangi zone is 2.5km long and will be tested in the December quarter.

The company said project development work had commenced, with initial metallurgical testwork indicating high gold recoveries from a low cost, high return dump leach/heap leach operation. (alex)