Release: Austindo updates E.Java exploration gold project
Monday, November 19 2007 - 02:45 AM WIB
Further prospecting and mapping continued to define moderately high-grade epithermal vein float and mineralised breccia outcrops in new prospect areas. Five samples of 10 cm to 1.5 m diameter, banded quartz-chalcedony-sulphide float cobbles found on low ridges at the Salak Prospect returned gold results ranging from 6.17 to 14.6 g/t Au.
The Salak prospect lies on the northern projection of the Kojan vein swarm and defines a potential mineralised vein system over 2 km length and showing an en echelon pattern of narrow veins within a 1.5 km wide corridor.
Extensive outcrops of silicified hydrothermal breccia have been chip sampled on the Suruh and Gregah prospects, located about 5 km east of Salak and Kojan prospects. These rocks are strongly anomalous in mercury, arsenic and antimony but weaker in gold. Arsenic, antimony and mercury are also anomalous, although generally less elevated, in the high-grade vein float reported to-date.
The geological and geochemical characteristics of mineralisation found on the Trenggalek Project reflect a hot-spring related epithermal model, in which gold-bearing quartz occurs in veins, stockworks and hydrothermal breccias formed in the uppermost parts of mineralised epithermal systems.
Although there is no significant gold mining recorded in the Trenggalek district, a large number of gold prospects have been identified and exploration to-date has been largely of a reconnaissance nature. Similarities with the high-grade epithermal vein fields of southern Sumatra and western Java are strong and suggest a high potential for the presence of economic gold deposits in the Trenggalek project area.
The Company successfully raised sufficient funding from a recently completed Rights Issue to substantially advance its Cibaliung Gold Project, located in Banten Province of Indonesia, towards first gold production. Further equity raising is required to complete this development, produce positive cash flow and to fund further exploration on projects, such as Trenggalek, which could be rapidly advanced to a drill definition phase by the second half of 2008. (end of edited release)