Oxiana Limited reports N. Sumatra mining activities
Wednesday, April 16 2008 - 01:03 AM WIB
Martabe Gold Project, North Sumatra
Permitting for the Martabe project proceeded to plan with the AMDAL (Environmental and Social Impact Statement) and Feasibility Study approved during the quarter and the final permit (Construction Permit) applied for in mid-March, with all final approvals expected in April.
Final approval will allow construction to commence immediately. Pending receipt of this permit, earth works are scheduled to commence late in the third quarter or early in fourth quarter of 2008.
Ausenco has been named as the preferred Engineering, Procurement and Construction Management (EPCM) contractor. Ausenco was the EPCM contractor for the Sepon gold operation, and in conjunction with Bateman Limited, for the Sepon copper operation.
Detailed engineering is well underway with the process design fixed and a review of Indonesian based design, engineering, manufacturing and construction underway.
Project works completed during the quarter included planning for the new jetty facility and access road and development of camp facilities.
Martabe near mine exploration
The Purnama Resource model is being updated following completion of an infill drilling program and is expected to improve confidence and confirm previous guidance.
Drilling has commenced to test extensions to the north and south of the Purnama deposit and to test geophysical targets to the west Results indicate there is additional potential to the north and south of the current Resource with drill results of 18.5m at 4.91g/t gold and 31.8g/t silver from 91.5m, 50m to north west of the planned pit and 43m at 2.98g/t gold and 22.8g/t silver from 21m, 50m to south of the planed pit.
The revised model for the nearby Barani Resource is nearing completion.
Martabe regional exploration
Regional exploration activity increased during the quarter, generating new drill targets, and refining existing geochemical/geophysical targets within the 1,600 km2 Martabe Contract of Work area.
A seven hole first pass drilling program was completed at the Natas prospect in the KapurGambir district, 30km south-east of Martabe, targeting gold mineralisation associated with (low sulphidation) epithermal quartz veins assaying up to 7.9g/t gold at surface. Several holes intersected quartz-carbonate veining and assays are pending.
At Natas West, soil sampling returned mostly low gold values. Grid soil sampling and an IP survey are planned to assist drill target definition. (end of excerpt)