Oxiana in Sulawesi copper-gold project deal

Australian mining firm Oxiana Limited said on Tuesday that its Indonesian unit PT Oxindo Exploration (EO) entered into a cooperation agreement with an Indonesian firm to explore two exploration licences in Sulawesi.

The two exploration licences are covering the Toluludu and Biyonga projects, the company said in statement.

Both projects comprise large alteration systems, delineated by previous explorers that are considered highly prospective for copper-gold porphyry style mineralisation. These prospects were never drilled due to the political climate in the 1990?s, it said.

EO also entered into a cooperation agreement with a local Indonesian company to explore an exploration licence covering a number of early stage porphyry copper projects in Ambon.

?Extensive Indonesia-wide field reconnaissance and sampling activities continued. Additional tenement applications have been submitted over higher priority porphyry copper-gold targets,? it added.

In April 2008, Oxiana had completed an option to acquire a 25 percent interest in nickel laterite deposit tenements in Sulawesi. Oxiana will spend a US$2.5 million for 2008 exploration program. It also has a further option under the agreement to increase its share to 75 percent.

Detailed data compilations, coupled with regional field reconnaissance mapping and sampling have identified several high priority porphyry copper-gold opportunities over which tenement applications have been submitted, it said.(denny)