Prosperity updates Aceh gold-copper project

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

Pinang-Pinang (Prosperity right to acquire 73%)

Pala Prospect
During the quarter, Prosperity released the results of the first drilling at Pala in the Pinang-Pinang gold-copper project in the Aceh Province.

The Pala Prospect represents the first of three mineralised centres identified within the MMU IUP and the first drill tested to date within a complex in excess of six kilometres long. Drilling has tested the mineralised zone at Pala at depths between 60 and 150 metres below surface. The gold and copper results from the drilling program are very encouraging with best results including;

> 22 metres @ 1.12 g/t gold and 0.40% copper from 32 metres within 66 metres @ 0.52 g/t gold and 0.18% copper in hole PNGD005

Mineralisation is hosted wholly within a multi-phase, vertically extensive, microdiorite complex which intrudes older limestone, granodiorite, and sedimentary country rocks, within a broadly northwest orientated structural corridor.

Veinlet and breccia-hosted pyrite-chalcopyrite mineralisation, intersected to date over a 250 x 250 m area (and open in all directions), post-dates domains of structurally and lithologically controlled, higher temperature microdiorite-hosted silica magnetitesulphide(?sericite-chlorite-epidote) endoskarn, and lesser granodiorite-hosted silicasericite-epidote-sulphide(?garnet-diopside) endoskarn. These assemblages, high pyrite to chalcopyrite sulphide ratios, and the predominating style of veinlet and fracture hosted mineralisation (over a disseminated style) suggests only the very top of a potentially large and vertically extensive porphyry system has been drill tested to date.

Further Land Acquisitions in Aceh
Prosperity has applied for three new exploration IUPs in Aceh as shown in Figure 1. Each exploration IUP is 10,000 hectares and these licenses will consolidate the Company?s land package over a 50 kilometre strike length of highly prospective under-explored tenure. These highly prospective licenses are located within the same geological belt of island arc-related intrusive rocks which run along strike 50 kilometres in a northwest direction from the Pinang-Pinang Project. The Company expects the applications for the IUPs to be processed during May 2010. (end of edited excerpt)