Release: Herald announces encouraging metallurgical report on N. Sumatra Zinc/Lead project

Australian mining company Herald Resources announced Thursday that encouraging metallurgical test results have been obtained from samples of mineralization taken from the Anjing Hitam sedex massive sulphide deposit.

Initial results indicate a zinc recovery of 87% reporting to a 58.5% zinc concentrate and lead recovery of 74% reporting to a 54.5% concentrate, using a primary grind of 80% passing 35 microns. It is believed that further testing will improve on these figures, particularly with regard to lead.

Recognizing similarity in proportions of main sulphides to Western Metals Ltd's Hellyer zinc mine in Tasmania, the company commissioned Western Metals to carry out flotation test work on quarter core samples from hole SOP30D. This core is regarded as being typical of the expected run-of-mine product, although a little higher in grade than the overall resource. The results were also compared with Hellyer ore, and indicate Anjing Hitam zinc and lead sulphides as having superior characteristics in several key components.

In general, Anjing Hitam material is reported to be softer than Hellyer in regards to grinding and hence energy consumption, and also has generally better liberation characteristics.

These results were obtained by using the Hellyer technique and were an improvement on a parallel test using standard flotation methods, particularly in relation to zinc recovery.

The Company is extremely grateful to Western Metals for their co-operation in doing this special testwork.

Drilling

Exploration drilling is in progress at two sites at Sopokomil. At Lae Jehe, hole SOP49D (11473N, 4554E), located approximately 200 metres NW of hole SOP17D, is in progress at a depth of 350 metres. Several zones with sulphides have been observed in expected intercepts, but the strongly sheared nature of the rock, resulting in core loss, makes grade prediction difficult. An interpreted fault repeating a zone of the favourable "sedex" bearing Julu stratigraphy was encountered lower in the hole, with significant sphalerite mineralization noted in the interval 326 metres to 350 metres (24m).

At the Bongkaras area, hole SOP50 encountered several small bands of sulphides in an updip position on section 12100N. A second hole, SOP51, is in progress targeting mineralisation approximately 130 metre down dip from SOP50D mineralization.

Results of these holes will be announced when available.

Herald Resources through its 71% owned subsidiary Annax International Ventures, holds 80 percent stake in the project, while state mining company PT Aneka Tambang holds the remaining 20 percent. (*)