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Mar 02, 1998
Strong Gold Anomaly Defined, Tiris Project, Sumatra, Indonesia
Mindoro Resources Ltd. ("Mindoro") announces stream sediment geochemical results from the western part of the Tiris Contract of Work (CoW), Sumatra, Indonesia, confirming and defining an unusually large and strong gold anomaly.
The Tiris CoW was acquired by Mindoro to cover two stream sediment gold geochemical anomalies defined by a 1986 Japanese International Cooperation Agency (JICA) reconnaissance program. The western gold anomaly covered approximately 16 square kilometres (km) with values ranging from 70 to greater than 10,000 parts per billion (ppb) gold, and from 0.5 to 12.3 parts per million (ppm) silver. This JICA anomaly was defined by just 17 sample sites (sample density = 1.3/km2) and its location was imprecisely known due to lack of accurate topographic maps. While a small portion of the westernmost part of the CoW is included within a jungle reserve that may be subject to restricted access, the anomaly and likely source are outside of this area. Accordingly, Mindoro's first objective was to verify the anomaly and outline its extent and precise location through detailed stream sediment sampling, prospecting and reconnaissance geological work.
The work was supervised by A. Buskas, P.Geo. (B.C.), and performed by exploration crews of PT Handal Srirajasa of Jakarta, Indonesia, Mindoro's local geological consultant. To date, 288 stream sediment samples have been collected from the western part of the CoW (sample density = 8/km2). Approximately 500 grams of sample were collected at each location and these were sieved on site. The fine (-80 mesh) fraction was shipped to Intertek Testing Services (Bondar Clegg) in Jakarta for analysis of gold, silver, copper, lead and zinc. The gold analyses were performed by fire assay using a 50 gram charge and had a lower detection limit of 2 ppb. Ten standard samples were inserted into the batch. Gold analyses for the standards varied within acceptable limits for these samples. An independent Australian laboratory is currently analysing a comprehensive series of check samples.
The accompanying map summarizes the gold results. Gold values range from less than 2 ppb to 20,000 ppb, and average 694 ppb (1,000 ppb = 1 gram per tonne [g/t]). The greater than 100 ppb (.01 g/t) contour defines an area about 6 km by 5 km which covers many drainage systems and is open to the east, north and south. The 1,000 ppb (1 g/t) contour covers several unrelated drainage systems and extends over an area of 4 km by 3 km and is open to the south and east. The 2,000 ppb (2 g/t) contour covers different drainages within an area of 3 km by 2 km and is open to the south and east.
Silver values range from less than 1 ppm to 17 ppm and averaged 1 ppm (1 g/t) across the entire area. An anomalous zone of silver, approximately 1 km by 1 km in extent correlates with the central-southern lobe of the gold geochemical anomaly and averages 4.8 ppm for 12 samples. More subdued copper, lead and zinc anomalies also correlate with the maximum gold values in the central-southern part of that anomaly. Extent of these anomalies remain to be more fully defined, but all of Mindoro's anomalies and their likely drainage sources fall within freely accessible areas of the Tiris CoW.
A total of 55 float and rock chip samples were also collected. Assay values ranged from less than 5 ppb to 11.7 ppm gold (1 ppm = 1 g/t), with an average of 0.314 ppm. In the area of the stream sediment anomaly, PT Handal geologists reported the presence of extensive argillic and silica alteration. Rock types noted in the area include rhyolitic to dacitic volcanic breccias, lithic tuffs, ashfall tuffs, welded tuffs and andesites. This geological setting is believed to be similar to that of the nearby Rawas Mine, commissioned by Laverton Gold N.L. in January of 1997, and with an annual production of approximately 80,000 ounces of gold equivalent. Immediate plans call for continuation of the geochemical program to cover the eastern part of the CoW, which also includes several JICA anomalies. Geological follow-up and evaluation of the western anomaly will commence in March. While Mindoro is encouraged by the strength, size and geological setting of the stream sediment geochemical anomaly indicated by these preliminary data, work to date is early-stage reconnaissance exploration and is neither extensive nor advanced enough to accurately establish the importance of the project. Considerable additional geological and geochemical work is necessary to quantify and characterise both the geochemical anomaly and its potential source.
Mindoro is a well-financed, Canadian mineral exploration company focussing on gold and gold-copper exploration in Asia, and operates, in addition to Indonesia, projects in Myanmar and the Philippines. Mindoro has 13,365,000 shares issued and outstanding and working capital of approximately $3,000,000.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
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