Robust updates E. Nusa Tenggara metals exploration project
Monday, November 3 2008 - 03:21 AM WIB
Romang Island, East Nusa Tenggara (gold-base metals exploration project)
Phase 1 Exploration Programme
Activities and cash flows for an 8-month budget covering the period from November 2008 to June 2009 were developed and agreed with the Company?s Indonesian partners.
The plan is to explore the northern and southern prospects at the same time during the season of calmer weather and seas, from November -April.
Northern Prospects
The main objective will be to identify high grade Pb-Ag-(Au) veins in northern prospects, especially at Kiaha, and to bring one or more of these into rapid production through shallow surface mining. Lump ore could be hand beneficiated, and shipped direct to Asian smelters, providing an income to fund detailed evaluation of the much larger Southern (Lakuwahi) Prospect.
The first step will be to map, rock chip and costean sample known veins, and locate old Ashton Mining drill holes. Veins are believed to occur in en echelon groups separated by stockworks. Known veins are about 2m wide, persisting for about 200m along strike and 100m plus down dip, and contain massive and disseminated sulphides assaying up to 30% Pb, 400g/t Ag and 2g/t Au. This is based on information in Report 806-9107 by PT Nailaka Marhila Mining (MJ Andrews) dated July 1991.
Northern prospect work (9 target areas) involves setting up a new camp, followed by mapping and sampling of veins, selected hand costeaning, and finally diamond drilling. The last would consist of about 25 x l00m holes, which would hopefully outline a saleable mining resource.
Robust continued discussions with representatives of China Non Ferrous Metals about entering into an offtake agreement for lump ore to be shipped direct to an Asian smelter. The proposed deal would be dependent on proving up a JORC compliant resource of 100,000 tonnes of contained lead.
Southern (Lakuwahi) Prospect
The main objective here is to follow up earlier Billiton sampling and drilling, with detailed geological (mapping), geochemical (rock chip sampling), and geophysical (magnetic, gravity, IP) work, to delineate high-grade volcanogenic massive sulphide (VMS) pods within the deposit in the event of mining these would be preferentially extracted to boost early cash flow. A limited programme of follow-up, step out scout drilling is also proposed - 15 x 70m holes, ie about 2500m.
Having already established the Lakuwahi camp, the next stage will be to cut lines and grid stake the caldera target area. This will be followed by mapping and rock chip sampling, spot height (theodolite) levelling, ground magnetics, and contract geophysics. The last will consist of gravity and IP (induced electrical polarisation) surveys. The abovementioned drilling would occur from early November 2008. (end of edited excerpt)