Oropa starts N.Sumatra gold project scoping study

Australian mining firm Oropa Limited said on Thursday that it has started to conduct a scoping study for its Sihayo 1 North and Sambung deposit in Pungkut gold project in North Sumatra.

The scoping study is targeted to determine the approximate costs and economics of mining and treatment based on the existing resources, and the scaling effect that any additional resources might have on the project, it said in quarterly report statement.

The scoping study results are expected in September 2008 quarter and have been conducted by Independent consultants SRK Consulting (Australasia) Pty Ltd.

Preliminary metallurgical test work is being carried out on a suite of deposit sample composites to provide processing recoveries and costs to be used in the pit optimization run also carried out by SRK.

The company also reported that drilling has resumed at Sihayo 1 North during the quarter to follow up on the North Western-Extension area, where geological re-interpretation indicated a suitable Permian limestone host behind a major unconformity. Prior soil sampling and test pits dug in the area indicated significant gold anomalism. The result of drilling confirms the exercise the existence of regolith and primary gold in jasper mineralization extending to the northwest of previous drilling, it said.

Initial drilling in old camp area of Sihayo 1 North prospect also indicates potential for additional gold mineralization, it added.

According to the company, the new JORC code compliant resource estimation for Sihayo 1 North brings the combined Sihayo-Sambung resources to 13.2mt @ 2.4g/t for 1.01 million tons ounces of gold.

Oropa has 75 percent stake in Pungkut gold project, with IDX-listed miner PT.Aneka Tambang holding the balance.(denny)