Straits? Mt Muro, Kuda gold projects update
Thursday, January 22 2004 - 06:45 AM WIB
MT MURO GOLD PROJECT
Straits - Contract of Work 70%
Drilling has continued throughout the quarter at the Juking Sopan region 22 kilometers to the west of the Mt Muro minesite with three helicopter supported diamond drill rigs. A total of 47 holes had been completed by the end of the calendar year. Results received to date, up to hole 40. Following the intersections at the Tasat Vein announced previously of 4.95m @ 17 g/t gold and 12.45m @ 8.2 g/t gold further encouraging intersections have been made including:
? JUS010; 2.3m @ 13.7 g/t Au from 77.3 m
? JUS012; 3.7m @ 7.3 g/t Au from 81.5 m
? JUS018; 9.1m @ 8.9 g/t Au from 97.5 m
? JUS025; 6.5m @ 28.1 g/t Au from 30 m; includ. 0.5m @ 319 g/t Au from 36.5m
? JUS033; 4.8m @ 3.5 g/t Au from 1 m
? JUS038; 5.2m @ 3.6 g/t Au from 105.5 m
Mapping, sampling and drilling continues to extend the vein system both along strike and at depth with the currently known vein system defined over a strike length of 1,400 meters, a width of 550m in the central area and a vertical extent of at least 150 meters. The Tasat Vein has been drilled over 600m of its 1,000m strike on roughly 40-60m centers. The most prospective veins are orientated north-north-west and similar trending veins are being defined. Mineralisation with variable grades is hosted in banded epithermal veins, hydrothermal breccias and fault zones.
Regional sampling has continued to define numerous highly prospective vein outcrops with excellent sample results. The volcanic centre covers over 25 square kilometers with only 4 square kilometers currently drilled. Drill testing will proceed on these systems as soon as access is finalised. High priority targets next quarter include the Tenan Vein and the Gunung Serai Vein System A field program has begun at the Tumbang Lahung region, 12 kilometres west of the mine site where a further multiple vein system has been outlined. Work will focus on developing drill targets for early testing of the potential of the region next quarter.
A formal review of work undertaken at Mt Muro to date will be completed in the first quarter of 2004. A decision to proceed to reserve definition drilling will then be taken prior to recommencement of operations.
Editor?s note: Mount Muro gold project is located in Central Kalimantan. In April 2003, Straits entered into a letter agreement with Aurora Gold Limited (which later merged with Abelle) to acquire a 70 percent interest in a joint venture established to explore, and if successful, to redevelop the area. Straits has the right to withdraw only after it has spent a minimum of US$1 million in direct exploration costs.
KUDA GOLD PROJECT
(Straits - 75%)
An initial drilling program has been completed at the Kuda Joint Venture with PT Aneka Tambang (25%), who hold the KP tenement in West Java. The KP is partly covered by areas of Production and Protection Forest. Drilling targeted a number of prospects within the tenement to get initial indications of the nature of the mineralization.
Nine diamond holes for a total of 830m were completed in the northern portion of the tenement in the Cibaliung region, targetting outcropping and sub-cropping low sulphidation epithermal veins in the creeks. Six separate vein systems were tested to between 52 and 137m depth. Over 4 kilometers of vein strike are currently defined in the area with these holes being the first drilled in the area.
Encouraging results reported include:
? Sungai A; KBDH02; 5.3m @ 3.7 g/t Au from 49.8 m
? Vein Creek; KBDH02; 4.7m @ 3.2 g/t Au from 57.5 m
? Ciwiwi; KBDH05; 3.9m @ 2.7 g/t Au from 71.3 m and 4.1m @ 4.0 g/t Au from 99.1 m
Two diamond holes totalling 325m were also completed at the Cijulang System in the southern portion of the tenement. The prospect contains a high sulphidation system covering over 1 km2. A silica cap is exposed at the top of the valley with a steep valley side exposing strong argillic alteration with pyrite and enargite. The holes were collared on section with hole 2 extending below the base of hole 1, defining a very large altered zone from surface to over 250m depth. The holes intersected altered volcanics with strong sulphide from 30m depth.
? Cijulang; KCDH01; 94m @ 0.6 g/t Au from 9.8 m
? Cijulang; KCDH02; 152m @ 0.6 g/t Au from 2.8 m
The first phase of drilling has defined significant mineralization that requires detailed assessment prior to further drill planning. (*)