SouthGobi updates Indonesian activities

The following is an excerpt of a report from Vancouver-based mining firm SouthGobi Energy Resources released Friday, updating its Indonesian activities (ed).

The Metallic Minerals division recently announced the discovery of an encouraging low sulphidation epithermal gold and silver system in Java. The company also is pleased to report the discovery of a new porphyry copper-gold system on a second project in Indonesia where SouthGobi has a 90% fully participating interest. The exact location of these two projects is not being disclosed at present for competitive reasons.

The newly discovered porphyry mineralization consists of chalcopyrite, bornite and pyrite disseminated in a potassic altered hornblende diorite porphyry with quartz veinlet stockwork. The porphyry mineralization has been followed in outcrop for 380 metres while boulders of similarly mineralized rock found 500 metres away may indicate a second zone.

The Kaputusan copper-gold joint venture on Bacan Island (North Maluku province. ed.)optioned in 2006, is awaiting environmental approval to begin a second phase 3,500-metre diamond drill program.

The company also has identified seven other epithermal gold and porphyry copper-gold opportunities in Indonesia and is working with joint venture partners to expedite the acquisition of mineral licences.(end of excerpt)