Reliance to start drilling Indonesian gold prospects Dec

Vancouver-based firm Golden Peaks Resources Ltd. reported on Tuesday that its target company Australian firm Reliance Resources Limited would kick off exploration activities at two gold prospects in Eastern Indonesia.

Reliance has advised Golden Peaks that in mid-December it will commence drilling at both the Tanoyan and Palopo prospects on the Island of Sulawesi, the company said adding that two company-owned diamond drill rigs have been purchased and are now being assembled and tested before being shipped up to site. An initial 5,000 metre program is planned for Tanoyan, commencing in December, with the aim of building on the inferred mineral resource, it added.

Golden Peaks is in the process of acquiring Reliance, an unlisted Australian public company, which holds the rights to five prospective gold exploration permits on the islands of Sulawesi and Halmahera in eastern Indonesia. Golden Peaks expects to complete the acquisition of Reliance in the near term.

Reliance also has an active exploration program for the remainder of the fourth quarter of calendar year 2010 to advance its other projects in Indonesia. Works including geological mapping, trenching, sampling and modelling of vein systems have been planned. (alex)