Reliance hits thicker gold mineralization

By Ruli Setiawan

Reliance Resources Ltd recently announced the completion of an additional 9 holes drilling totaling 1,271m of diamond drilling on its 75 percent owned Tanoyan Gold Project in Indonesia.

To date, 19 holes totaling 2,802 metres have been completed in a planned 10,000 meter Phase 2 program, which commenced after the release of mineral resource estimate in March 2012 with inferred mineral resource of 208,000 ounces of Au at 1.41 g/t Au.

Highlights of the recent results include a wide intersection which continues to confirm the consistency of a higher-grade and thicker gold mineralization zone, at intermediate levels of the North Sondana Block, especially between the depth of 300m and 380m, namely 24.9 metres at 2.8 g/t Au from 95m including 3.4 metres at 7.0 g/t Au from 104.3m.

Reliance has engaged consultants to manage the preparation of a Feasibility Study and Environmental Impact Assessment Study, which are both necessary to transition the property status from exploration, to exploitation status.

"Reliance management is pleased with the steady progress of the drilling at Tanoyan, which is necessary to update our resource position and provide the basis for the recently commenced studies that will ascertain the feasibility of mining and treatment of the Tanoyan vein system, as well as transition the status of the property from exploration to exploitation stage. We continue to explore and define mineral resources utilising two owner-operated diamond drill rigs, which allow us to carry out very cost-effective drilling. Work is progressing well on our other Indonesian projects, including the Kapa Kapa high-grade copper-silver prospect. We look forward to updating shareholders as results become available," Reliance Resources CEO Gary Lewis said.

The Tanoyan Gold Project consists of an extensive system of auriferous quartz veins, comprising four principal vein systems, Sondana, Ramai, Modupola/Talong and Lingkobungon. These veins are predominantly orientated north-east and dip steeply or moderately to the north-west or south-east. The veins are hosted by andesitic volcanic rocks and have been mapped over a combined strike length of approximately 6 kilometres.

The Company has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera, in East Indonesia. The projects offer both exploration potential and an existing resource base. All five projects are adjacent to, or along strike from, operating gold mines or identified gold resources with similar geology and structural features. Importantly, all projects have been converted to IUP tenements.

The Company is active on three of its five Indonesian gold projects; currently drilling on the Tanoyan Gold Project and conducting surface exploration programs on the Kapa Kapa Gold-Silver Project and the Roko Gold Project.

Editing by Er Audy Zandri