PacRim eyeing stake at C. Kalimantan porphyry copper-gold project

Canadian mining firm PacRim Resources Ltd. announced Tuesday it had entered into an exclusive option agreement to earn a 10 percent interest in a sixth generation Contract of Work (COW) in Indonesia. The COW is held by PT Pasifik Masao Mineral and covers an area of 335 square kilometers.

The Contract of Work held by PT Pasifik Masao Mineral is one of a select few COW's that have been kept in good standing during the hiatus in exploration in Indonesia during the last 4-5 years.

The COW is located in Central Kalimantan and adjoins the Mt Muro mine. The property also lies within the same geological belt as the Kelian mine in East Kalimantan

Under the terms of the option agreement, Pacrim can earn a 10 percent interest in the Britsh Virgin Island company, Golden Arrow Resources Limited, by spending C$500,000 on tenement. Golden Arrow Resources Limited holds an 85 percent foreign interest in PT Pasifik Masao Mineral. Watts Griffith McQuat is presently preparing a due diligence report on the property. Pacrim is currently in discussions with several financial institutions with the objective of securing sufficient funds necessary to commence a 5,000-meter drilling program to test the most prospective targets within the COW prior to year's end. (alex)