Prosperity updates Aceh gold-copper project

The following is an excerpt taken from Australian firm Prosperity Resources Limited?s quarterly report released on Thursday.

Pinang-Pinang (Prosperity right to acquire 80%)

The Pinang-Pinang gold-copper project is located in the southern regency of Aceh Province, Indonesia, 20 kilometres south-southeast of the town of Tapaktuan and five kilometres inland from the Indian Ocean.

Extensive field work is being undertaken at the Pinang-Pinang gold-copper project as part of Prosperity?s due diligence program towards acquiring an 80% interest in the project.

Work has focussed on the Pala Prospect with detailed soil sampling and ground magnetic surveys being completed over a two by two kilometre area. Detailed channel and trench sampling and mapping is currently underway.

Geological mapping along with the previously reported historic trench results at Pala has defined a northwest trending structural corridor containing multiple, sub-vertical, goldcopper?molybdenum mineralised silica-magnetite-sulphide bodies hosted within intrusive andesitic porphyry and microdiorite host-rocks.

Five of these mineralised silica-magnetite-sulphide bodies have been mapped with outcrop widths between 5 and 20m wide and strike lengths up to 500m. They occur within shear-hosted alteration zones and comprise replacement silica and abundant hydrothermal magnetite alteration, lesser quartz-sulphide vein and breccia fill, and disseminated and locally semi-massive pyrite-chalcopyrite ?molybdenite mineralisation.

Mapping has also discovered a second area of mineralisation some 300 to 900 metres to the north to north west at the Nilam Prospect

Exposures of suiphide ?quartz sealed veinlets and fracture-fill and porphyry-style alteration, including disseminated hydrothermal magnetite and pervasive silica-chlorite-sericite alteration, suggest these replacement alteration zones and broader halos of stockwork veining and fracturing may define the upper extremity of a mineralised (gold-rich) porphyry system. Field work, including an extensive trenching program is ongoing.

Corporate
Prosperity Resources Limited is an exploration company with a strategic focus on Indonesia, specifically on the recently acquired Pinang-Pinang project in Aceh.

During the quarter Prosperity secured a USD$500,000 loan facility from Resource GlobalFinance Ltd to continue with the exploration program at the Pinang-Pinang project.

Prosperity also accepted an offer from PT Indo Asia Resources to purchase its 10% stake in the Masuparia gold-copper project in Central Kalimantan for USD$112,500.

Corporate activities for the September 2009 quarter will focus on executing the formal share sale agreement with PT Multi Mineral Utama (MMU) and PT Dana for the Pinang-Pinang project and establishing the joint venture holding company with PT Dana. This holding company will be used for all metals projects in Indonesia. (end of edited excerpt)