Paramount acquires interest in Gunung Rosa project
Tuesday, March 20 2012 - 03:56 AM WIB
Australian-listed firm Paramount Mining Corporation Limited said that its 85 percent owned subsidiary PT Paramindo had finalized a share subscription agreement with PT CKP to acquire interest in Gunung Rosa project in West Java.
The company said in a press statement on Tuesday that the agreement registered Paramindo?s initial 10% equity interest in the Gunung Rosa gold, silver and base metal mine project in West Java.
The Gunung Rosa Project is a high-grade gold-silver-base metal sulphide project within a granted mining license (exploitation IUP). The recognized mineralization occurs in steeply dipping mesothermal veins in excess of 2km in strike length contained within structures.
The Company has acquired the equity interest by the payment of USD 1,000,000 in several tranches over the period since the project was announced to the ASX in August 2011 following the successful legal and technical due diligence.
Mineralization has been confirmed by the new drilling program to extend to 200-250 meters from surface and this mineralization remains open at these depths. Early trial mining will extract significant mineralized wall rock left behind by poor early mining practices in the upper levels while, in parallel, new un-mined high grade areas below will be developed for full production.
A technical meeting, planned over the next 2 weeks, will define the optimal mine planning strategy as a basis for formalizing a trial mining operation underpinned by new metallurgical/beneficiation studies now commencing in Perth.
?This marks the first step of the agreed 85% purchase of the project by Paramindo and has triggered the re-development of the existing mine using more efficient mining practices with modern metallurgical processes,? said Paramount?s Chief Executive Officer Terry Holohan.
Mo Munshi, the Company?s Chairman added that the operating team would now be able to develop the mine as quickly as possible under the valid exploitation license along the same principles as the Kingsrose Mining?s Way Linggo Mine. This would then give a relatively quick return to our long-faithful shareholders.
Editing by Benget Besalicto Tnb.