Press release : Herald Resources limited : Exciting new tin discovery off Sumatera while Dairi returns further positive results

Herald Resources Ltd's exploration successes have continued, with the company reporting an exciting new tin discovery at its Belitung Island Project and the announcement of further positive results from the Dairi zinc-lead deposit in North Sumatra.

A drilling program at the 100% owned Batu Besi tin prospect on Belitung Island is due to be completed this month but already excellent intercepts of tin mineralisation have been recorded.

Some of the more outstanding results include: 52 metres at 1.45% tin, 52 metres at 1.02% tin, 51 metres at 1.31% tin, 31 metres at 1.22% tin , 24metres at 1.20% tin, 18metres at 2.36% tin, 24 metres at 1.20% tin, 24 metres at 1.14% tin and 14 metres at 1.42% tin. The intercepts commence at depths ranging from surface to 29 metres down hole.

Herald Executive Director, Mr Michael Wright said: "It's early days but, from the mineralisation we have encountered and geological studies undertaken, it is clear that a significant bedrock deposit is present. The mineralisation is close to the surface and could be amenable to open pit mining."

"At current tin prices of near $US10,000 a tonne, an hypothetical project containing 1% tin would contain inground metal to the value of $100 million per 1 million tonnes of resource and be equivalent to a gold grade of 6 grams a tonne," Mr Wright went on to say.

"We are confident we have a potentially very exciting project."

Belitung is one of the famed "tin islands", extending south from the Malay Peninsula along the east coast of Sumatra, and where the major tin company PT Timah produces about 40,000 tonnes of tin metal a year.

Batu Besi is on a magnetic linear some kilometres in length with the bulk of the structure covered by soil or alluvials. The deposit has a number of positive factors, including reasonably high grade, extreme weathering resulting in cheap mining crushing and grinding, several nearby tin smelters with spare capacity, low capital costs and an experienced mining workforce living locally.

Meanwhile, at the Herald controlled Dairi zinc/lead project in North Sumatra, further results have been received prior to drilling being suspended due to the end of year shutdown.

Herald, which previously advised highly significant zinc-lead mineralisation from the Anjing Hitam sector of the Dairi project, reported results from two holes drilled approximately 2.5 to 3km north west of the Anjing Hitam zone at the Bongkaras prospect.

Drill hole SOP44D intercepted 8.1 metres of mineralisation from 140.8 metres assaying 6% zinc and 2.9% lead while SOP45D, 450 metres away, had 6 metres of massive sulphide mineralisation.

"It is highly significant that all holes in this new north-west zone assayed to date have encountered potentially economic mineralisation," Mr Wright said. "The total extent of drilling is now over 3000 metres."

"Meanwhile, at Anjing Hitam to the south we are still awaiting results of assays from a couple of other holes,'' he went on to say. "However, once structural geological interpretations and ground control surveys are complete, an initial resource estimate for Anjing Hitam will be announced in early January." (*)