Prosperity reports significant high-grade gold/copper at Aceh project
Monday, August 24 2009 - 03:14 AM WIB
The trenching program was completed after soil sampling by PSP defined very strong (+/-1g/t gold) soil anomalies at the Pala prospect, the company said.
The company?s Chairman, Mo Munshi said ?Prosperity is about to commence the first ever drill testing of this target and we could be on the verge of a major gold/copper discovery.?
A drillcorp diamond drill rig has arrived on site and will immediately commence a 3,000m diamond core program at the Pala prospect. Five 80m spaced drill fences are initially proposed to test the top 80 metres of the Pala prospect, it said.
Gold mineralisation (+copper) is seen to occur in two settings 1) Within a series of parallel north-west trending silica-magnetite-sulphide replacement zones up to 25 metres wide and at least 400m long, and 2) As quartz stockwork mineralisation within intrusive andesitic porphyry and microdiorite rocks that also host the silica-magnetite-sulphide replacement bodies.
In April 2009 Prosperity announced that it had entered into an agreement to acquire the Pinang-Pinang gold-copper project and commenced exploration as part of its due diligence.
In July 2009 Prosperity through its 90% owned Indonesian subsidiary, PT Prospindo, signed a formal Joint Venture agreement with the shareholders of PT Multi Mineral Utama (PT MMU) which allows for the subscription of 80% of the shares in PT MMU by the PT Prospindo (90%) - PT Dana (10%) Joint Venture holding company created under the October 2008 Cooperation Agreement.
The Joint Venture holding company named PT Prosperity Surya Persada (PT PSP) will earn 80% equity in PT MMU through exploration expenditure of US$1,250,000. PT PSP has the option to purchase a further 10% equity in PT MMU for cash or shares to the value of 10% of the net present value of the Pala Project at that time as determined by an Independent Expert. Under this structure Prosperity Resources Ltd has the ability to hold up to 72.9% of the Pinang-Pinang project with the other parties free carried. (denny)