The next Bre-x =CLL/ASE
**************************
Coleville Resources Ltd - News Release
Acquisition of Indonesian properties; Venezuelan property mining begins
Coleville Resources Ltd CLL
Shares issued 5,971,000 Jun 20 close $1.92
Fri 21 Jun 96 News Release
Mr David Bourne reports
The company has entered into three agreements to acquire up to a total of
402,000 ha of highly prospective mineral lands on the island of Sumatra and
one agreement to acquire a strategically located property on the island of
Kalimantan, Indonesia.
The first agreement covers the purchase of the Ojolali property, PT Kurnia
Dwipa Kencana, in the Lampung province, south central Sumatra. The
consulting geologist reports, covering 25 sq km, the Ojolali property, a
gold-silver prospect, holds potential for mineralized stockworks, open pit
bulk tonnage and heap leach operations. The Ojolali property is unique
because of its numerous gold and precious metal occurrences and its
wide-spread hydrothermal alteration contained in steeply dipping vein
systems.
Exploration work carried out to date by Australian and Chinese mining
groups has outlined seven large vein systems with consistent NNE-SSW strike
and steep west or east dip.
The vein systems range in width from 10 to 40m with strike length of up to
4km.
This property will serve as the base for Coleville's operations on this
property and others that are described below. Ojolali has outstanding
infrastructure; extensive first class housing and offices, a fully equipped
mining lab, as well as a new D7G Caterpillar bulldozer.
Agreement to Acquire Adjoining 29,300 ha Property
On the basis of field followup and groundtruthing of Radar Interpretation
of the Ojolali and surrounding lands, Coleville has entered into an
agreement to acquire from Noramco Capital a 29,300 ha property from lands
released from the Indonesian Ministry of Mines Status Quo land bank. This
property is available through Noramco, pursuant to an exclusive memorandum
of understanding signed between Noramco Capital and PT Panutan, Indonesia,
witnessed by the Indonesian Minister of Mines, in Toronto on June 13 1996.
Status Quo lands are mineral properties deemed to be of superior merit that
have been set aside over the years by the Indonesian Ministry of Mines.
The 29,300 ha, which protect Coleville's interests, cover the greater part
of the Caldera on the Ojolali and contain additional look-alike structures.
Option to Purchase an Additional 370,000 ha to secure the Region
By way of a MOU on June 14 1996 between the company and PT Panutan,
arranged by Noramco, the company has the right to purchase up to 370,000 ha
of mineral lands that surround the first two contracted properties
described above.
Coleville, using the latest exploration tools, has embarked on a regional
survey to select and acquire under the option agreement those lands that
are geologically significant to its existing holdings.
Kalimantan
Negotiations are under way to complete a joint venture agreement, whereby
Coleville acquires an 80% interest in a property on Kalimantan, which,
based on previous field work has indicated significant gold and diamond
values. The property lies on the North/South running belt 20km south of
CRZ's Kelian 300,000 oz annual gold producer.
Additional geological field work by the company's consulting geologist is
to begin in July in anticipation of successfully completing the transaction
and moving the project forward.
Venezuela
The company has completed all of its legal work on the Pemon concession and
has received certified title opinion as to its 100% ownership of the
concession consisting of 1711 ha as well as receiving regulatory approval
on all of its contractual obligations.
Mining equipment is presently in transit to Pemon and is expected to be
commissioned for production in July. Initially, gold and diamonds will be
mined from placer deposits while a basic geological reconnaissance program
will search for the source of the extensive known mineral occurrence on the
property.
Side Looking Aperture Radar imagery indicates the presence of converging
regional structures on the property conducive to kimberlite type structures
and gold bearing hard rock sources. |
