WAL identifies more gold potential in W. Kalimantan

By Romel S. Gurky

ASX-listed Wavenet International Ltd (WAL) said an area of approximately 4 kilometers in length on the Bangun River drainage at its Sintang gold project in West Kalimantan has been identified as potential for alluvial gold mining.

?Reconnaissance sampling using panning concentrates indicated that most of the Bangun river system is mineralized with gold. Some locations along this drainage are currently being mined by artisans using primitive sluicing and jig equipment,? the company said in a statement Wednesday.

The company said there are several alluvial deposits occurring in the Bangun river valley ranging from recent fine sand and silt to older alluvial terraces of coarse sand and gravel as well as some areas of pebble conglomerates - all known to be gold-bearing.

A sampling program using a Bangka drill on lines at 100 meters spacing through the Bangun alluvial areas is in progress, WAL said.

This will assist WAL to assess resource potential. An initial Bangka drilling campaign of 20 holes has been completed, it added. A further 10 holes were planned but some of these were unable to be completed in this campaign due to heavy rains and flooding in the catchment. 62 samples have been submitted to Intertek Laboratory in Jakarta for gold analysis. Results are not yet returned.

?Initial review of the samples indicates that bronze/gold-coloured mica (probably phlogopite) is extensive throughout the alluvium. In some samples this mineral exceeds 20 percent of the total mineral content. This type of mica is indicative of hydrothermal alteration of the granodiorite host rock biotite and is usually the result of addition of silica, magnesium and aluminium oxides and depletion of iron oxides,? the company explained.

?The frequency of bronze mica occurrence indicates that the bedrock source material is extensively altered and the provenance for the alluvial gold is likely to be on our concession,? it added.

Editing by Reiner Simanjuntak