Paramount identifies 6 exploration targets at Gunung Rosa

By Peni Pedriawan

After completing the Share Subscription Agreement between its 85 percent owned Indonesian subsidiary PT Paramindo and PT Cikondang Kancana Prima to acquire an 85 percent equity interest in the Gunung Rosa high grade gold, silver and base metal project in West Java, equals to 72.25 percent holding, ASX listed Paramount Mining Corporation Limited recently stated it has identified six new and discrete targets through helimag survey for further exploration.

Following the conclusion of a successful 12 month due diligence mine evaluation program, the company also stated that drilling at the Cap Palu vein section confirms significantly wider intercepts of gold-copper-base metal mineralisation, and confirms the high grades previously intersected in the central Cisudi section of the vein system, also over a wider zone.

The six main target zones are The Gunung Rosa vein, which is hosted in breccias that occupy one of a number of marginal structures that appear to define the faulted or rifted margin of an intrusive breccia body.

The structures that bound a specific area, the 2nd target, suggest that there has been a collapse of the breccia system opening up normal faults about its margins that have been occupied by later hydrothermal breccias and mineralised fluids during introduction of mineralisation.

There are a number of other similar faults apparent in the magnetic data including one that cuts directly across the quiet magnetic zone which is strongly mineralised. These represent a late yet high grade mineralisation event.

The well-developed structural boundaries that delimit the quiet magnetic feature may be host to Au-Ag-base metal mineralisation similar in character to that at Cap Palu, Cisudi and Cibitung. An area of hydrothermally altered intrusive breccia or an intrusive body surrounded by target 1 becomes the second target. It abruptly terminates earlier silica magnetite alteration that forms the third and the fifth targets.

Support for this comes from sparse outcrop of breccias and pebble dykes, drill intersection and underground exposure of intrusive breccias, pebble dykes as well as silica-pyrite alteration with magnetite destructive alteration with silica and base metals. This is cut by well-mineralised hydrothermal veins. It may host bulk tonnage low grade resources of marginal to mineralised veins within the breccias. This target has not yet been drill tested.

The nature of the third target is unclear but it appears that it may represent the core of an intrusive porphyry. It is bound by silica-magnetite alteration, the sixth target, to the immediate south, east and west and silica-clay-pyrite alteration, the fifth target, which lies outside of the silica-magnetite zone.

The fourth target may represent a similar target to the second target but its character has not been defined. It appears to be in structural contact with silica-magnetite alteration to the immediate north.

The fifth target represents an area that has limited outcrop of silica-pyrite-clay alteration which might? be related to an intrusive porphyry body or intrusive breccias discussed in target 3.

The low magnetic character is thought to be related to magnetite destruction of the silica-magnetite alteration forming target 6, which is characterised by a strong magnetic signature and has been recognised in the field as silica-magnetite alteration. Its distribution may reflect an alteration halo about an intrusive porphyry.

Two main centres are inferred as shown. Post intrusive faulting into the inferred porphyry is strongly mineralised suggesting there is a blind mineralised porphyry driver from beneath which the mineralising hydrothermal fluids have been derived.

Such features can reflect upper levels of porphyry environments. These features will be subject to more detailed scrutiny and shallow drilling to determine the character of the geological environment occurring as much of the area is blanketed by thick soil.

?This marks the final chapter in the evaluation due diligence of the mining component of the project. Following the successful study we are now confident we can move forward with the mine development program with the sole aim of refurbishing the mine and commencing operations as soon as possible. We will soon be completing our metallurgical test-work, where the payable metals are responding well in the laboratory to traditional metallurgical unit processes, and will be able to start our Engineering Studies in earnest which we plan to complete later this year. Once the metallurgical flow-sheet is finalised we will be in a position to purchase our long lead items, start the dewatering of the mine and commence operations within the underground workings,? Company CEO Terry Holohan said.

Editing by Audy Er Zandri