Wavenet acquires gold project in West Kalimantan
Friday, February 24 2012 - 04:54 AM WIB
Australia-listed mining company Wavenet International Limited (WAL) said it had signed an agreement with PT Mineral Indosin (PTM1) to acquire a high grade gold and silver project in the Sintang area of West Kalimantan.
PT Mineral Indosin (PTMI) holds a large Exploration Permit for gold in the Sintang Regency, West Kalimantan. Under the agreement WAL has now acquired 95% of PTMI company shares subject to the approval of Indonesia ?s Capital Investment Coordinating Board.
WAL said in a press statement on Friday that the concession occupied 11,000 Ha, with approximately 22 kilometers long and by 6 kilometers wide in Sintang regency. The concession was a well-known gold mining district where artisan miners have been producing gold for the last century.
It said that all the elements of a classic mineralized epithermal setting are present. These include widespread hydrothermal alteration, a suitable geological setting and complex deformation history.
Preliminary mapping and reconnaissance has identified several gold workings, large areas of alteration and potential for mineralized structures.
Surface geochemical sampling has just been completed and over 500 samples are currently being tested for gold, silver, copper, lead and zinc.
WAL intends to further test the concession with diamond drilling and to start alluvial dredging operations to generate cash flow.
The Sintang Project also has excellent indications of polymetallic mineralization from the exploration work so far completed. Several locations on the concession are currently being mined for gold by a collective of artisans from local villages.
Editing by Benget Besalicto Tnb.