Quarterly Report
Three months ending
31 March, 2002
Cibaliung Project - Banten, Indonesia
Project Highlights
- Cibaliung to proceed with Preliminary Feasibility Study;
- MMI results indicate new vein targets south and east of Cibitung;
- Detailed mapping has been completed over the Bukit Breksi prospect;
- Assessment of new opportunities is ongoing.
Corporate
- The Company AGM will be held on 28 May 2002 in North Sydney.
Expenditure
- Total exploration expenditure for the quarter was A$ 82,844.
John C. Carlile
Managing Director & CEO
16th April, 2002
EXPLORATION
Cibaliung Project - Banten, Indonesia
Preliminary Feasibility Study
The Company has updated an internal Scoping Study (SS) undertaken in December 2000 to incorporate the latest resource estimates published in July 2001 (see table below).
Resource Category
|
Deposit
(tonnes)
|
Grade
Au (g/t)
|
Grade
Au (g/t)
|
Contained
Au (oz)
|
Inferred
|
823,000
|
10.47
|
60.8
|
277,000
|
Indicated
|
476,000
|
10.34
|
60.6
|
158,000
|
Total*
|
1,299,000
|
10.42
|
60.7
|
435,000
|
*Note: Resources are estimated using a 3g/t Au cut-off and are in accordance with the Joint Ore Reserves Committee (JORC) guidelines.
In the revised SS, recoverable material is estimated to be 904,000 tonnes @ 10.5g/t Au and 69g/t Ag or 11.4g/t Au equivalent (Au eq.) containing 330,000oz Au eq. The SS is based on a conventional "cut-and-fill" mining method feeding a 150,000 tonnes per annum conventional CIL/CIP processing plant. Results from the SS indicate that Cibaliung could be viable at a gold price of US$300/oz or above (using a 6.5g/t Au eq. cut-off grade). Annual production of around 50,000oz Au eq. for 6 years is envisaged.
Australian Mining Consultants will conduct a Preliminary Feasibility Study, which will commence in mid-April. Thereafter, the Company expects that a decision to proceed to a full-scale definitive feasibility study will be made within three months.
FIGURE 1: Cibaliung Resource Blocks
Figure 1 illustrates the new block extensions in the July 2001 resource compared to the previous resource statement issued in November 1999.
Mobile Metal Iron - Survey Results
All assay results have now been received from the Mobile Metal Iron (MMI) sampling program. MMI is a technique that selectively detects the mobile ions present is soils. The mobile ions travel upward from a mineralised source and allow detection of mineralisation through post-mineral cover rocks.
FIGURE 2: MMI - Gold Anomaly Map
The contoured gold and silver distributions are illustrated in Figures 2 & 3. Key areas of interest occur where Au-Ag anomalies are coincident similar to those obtained by the orientation survey over Cikoneng & Cibitung. New targets are indicated at Cikeni and Rorah Kadal where mineralised quartz veins (best value = 14.4g/t Au) outcrop and east (near AC-045) and southeast of Cibitung, where no veins have been recorded to date.
FIGURE 3: MMI - Silver Anomaly Map
The MMI survey results suggest that a coincident silver and gold response may be a pathfinder for sub-cropping veins. Initial follow-up on possible buried vein targets will involve test pitting and trenching to establish if drilling is warranted. Ongoing work will also attempt to distinguish between mineralised veins and fault structures.
Detailed Mapping
Detailed mapping was completed over the Bukit Breksi prospect, located 3km southeast of Cibitung (see Figure 4). The extensive area of silica-pyrite alteration (1km x 200-400m) is on the southeastern extension of the NW-trending fault system that extends through the Cikoneng-Cibitung resource. Assay results from surface rock samples are generally low, but the alteration characteristics are similar to those at Cikoneng-Cibitung. This target area will be followed up using MMI in an attempt to locate sub-cropping veins.
FIGURE 4: Regional KP Prospect Map
Land Access
Negotiations to gain access to adjacent prospects east and south of the main Cikoneng and Cibitung deposits continue. Vein mineralisation has been previously identified in these areas and the recent MMI survey also indicates potential within these same areas.
Project Generation
Evaluation of a number of high-grade epithermal gold projects has shifted from Java to the island of Sumatra in Indonesia was undertaken during the quarter. To date, no project has been secured as a suitable addition to the portfolio. Project generation work will continue throughout Indonesia and Australia during the course of the year.
CORPORATE
Annual General Meeting
The Company will hold its Annual General Meeting of Shareholders at the North Sydney Harbourview Hotel, Bradfield 3 Room, 17 Blue Street, North Sydney at 10:00am on Tuesday 28th May 2002.
EXPENDITURE
Exploration expenditure in Indonesia during the quarter amounted to A$ 82,844.
In accordance with Australian Stock Exchange Listing Rule 5.10, this report is based on information compiled by Mr. Drew D. Henry as Consultant Geologist for the Company. Mr. Henry has consented in writing to the inclusion of such information in this report in the form and context in which it appears. Mr. Henry is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and holds the relevant qualifications as a "competent person" as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves..
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