Paramount acquires Java gold project

Australian firm Paramount Mining Corporation Limited announced on Tuesday that its Indonesian subsidiary, PT Paramindo, has reached an agreement to acquire a 90% interest in the 1,000 hectare Gunung Julang gold-silver license (KP) from PT Sumber Alam Cipta Nusantara (SACN).

The Gunung Julang KP is located approximately 20 kms west of PT Aneka Tambang?s multi-million ounce Pongkor epithermal gold silver deposit and 100 kms southwest of Jakarta, in Banten Province.

The KP contains an epithermal vein array comprising five individual en echelon, sub-parallel, auriferous quartz vein zones. The epithermal veins within the Gunung Julang project appear to be hosted largely in massive to crudely flow-banded, and locally well-banded, dacite sub-volcanic intrusions.

The Cisampal and Cisoka Veins have been delineated largely by artisanal mine workings over a cumulative strike length of at least 1.5 kilometres, along the east flanks of two ridges on both sides of the Cisoka river.

Diamond drilling will test the continuity of the high grade vein below the current workings to a depth of 500 metres as well as testing the width of the combined vein plus brecciated mineralized wallrock with a target width of at least five metres mineable zone.

Paramount?s Joint Venture partner, PT Dana and the vendors of the project are working with the relevant authorities to resolve any issues with future mining inside the boundary of the National Park, the company said. In the meantime, Paramount can complete exploration work inside the boundaries of the Agricultural Enclave and on other parts of the license not covered by National Park. (denny)