Sumatra Copper & Gold: Further Tembang high grade drilling results
Tuesday, October 12 2010 - 02:29 AM WIB
Tembang Drilling Update
The Tembang project is located approximately 120 kilometres north-northeast of Bengkulu in the Musi Rawas regency of South Sumatra province. Tembang is a large intermediate-suiphidation epithermal deposit comprising gold-silver bearing quartz veins hosted by Tertiary volcanics. The Company has rights to an IUP with an area of 9,979 hectares over and around the former Rawas mine that operated between 1997 and 2000.
To date, 2,554 metres of drilling have been completed in the 10,000 metre follow-up program to the 5,000 metre program recently completed with many encouraging results. Belinau continues to return excellent results from the southern shoot including 4.05 metres @ 15.53 g/t Au and 260.6 g/t Ag from Hole RDD1 0091. This extends the southern high grade shoot a further 50 metres along strike to the south.
Hole RDD10086 also confirmed depth continuity of this shoot and returned 2.00 metres @ 41.16g/t Au and 41.0 g/t Ag. This intercept is 75 metres below the extent of the Snowden 2009 resource.
A larger drill rig, capable of drilling up to 1,000 metres, is currently being mobilised to accelerate the drilling program and to enable deep holes to be drilled to intercept the high grade feeder zones at Berenai/Nuri and to test the Belinau high grade shoots at depth.
Hole RDD10090 drilled at Jenih returned a promising result of 3.65 metres @ 4.12 g/t Au, 7.6 g/t Ag from 152 metres downhole with several other zones of mineralisation higher up in the hole. Mineralisation was intercepted on the margin of a dyke as similarly found at Belinau and Berenai. This is a new discovery which was targeted based on our geological exploration model. It will be followed up with further drilling along strike.
A series of Induced Polarisation (?IP?) lines are being run across Belinau, Tembang and Berenai to characterise the signature of veins and zones of silicified hydrothermal breccia. This method is commonly used in epithermal systems and, if successful, will assist in identification of targets to explore in the Belinau vein system especially under cover to the south west.
Resources
With the commissioning of a new and extensive drilling program, it has been decided to defer a resource update until all the data from this program is to hand and can be incorporated into the modelling. The Company expects to be in a position to publish a revised resource statement in the second quarter of 2011.
Preliminary indications suggest there will be an increase in the gold content in the vein resources and a significant enhancement of grade. This is consistent with our perception that the nature of Tembang is changing with the discovery through further drilling of higher grade zones at depth, particularly at Belinau. However, a more rigorous review of the geological model based on the results of the surface geological mapping is likely to result in a material reduction of inferred halo resources. (end of edited release)