Reliance records high grade gold in Sondana vein

By Demas Simbolon

Vancouver-based firm Reliance Resources Ltd. announced recently received gold assays, which have confirmed the discovery of significant high grade gold mineralization in the Central Sondana vein; Tanoyan Gold Project.

It said that the drill hole TND 106 intersected 6.2 meters at 8.1 grams of gold per ton within broad zone of 42.95 meters at 1.6 grams of gold per ton

This intersection is one of the strongest so far obtained on the Tanoyan property and also has important implications for the geological understanding of the Sondana gold vein system.

?Importantly, the TND106 result infers continuity between the strong gold mineralization in North Sondana and Central Sondana at intermediate depths. This inference will be tested by further drilling as part of the Company's current, 10,000 meter, Phase 2 drill program,? the company in the statement said.

Reliance Resources CEO Gary Lewis said: "It is very encouraging to be able to update shareholders with this important result. Besides being one of the best holes ever from Tanoyan, it has led to important new understanding of the Sondana vein, and points to future exploration success and increase in mineral resources. The consistency of high-grade gold mineralization is further demonstrated by this result which will be important when it comes the time to commercialize the Tanonyan gold deposits. The geological lessons being learned in Central and North Sondana put us in a good position as we explore further north along the Sondana vein structure. Based on continued good results, Reliance has engaged consultants to complete a set of studies which will be submitted to the Indonesian Government and will lead to the conversion of the Tanoyan property from exploration to exploitation (production) stage."

Editing by Adianto P. Simamora