What is the atmosphere towards investing in the Mining sector of Indonesia?, read on..........
This release will interest any Company and their investors operating in Indonesia. As suspected, there is an increasing desire for companies to diversify outside of Indonesia as much as possible. Pacific Amber is just one of these, IPJ, YRI are others.
The Indos just don't seem to get it, they have messed arround with the mining sector and wonder why investment monies are drying up, fewer Indonesian nationals employed in mining exploration and much less work being done on the COW's. Hopefully they are in touch with reality and will find ways to placate the markets. An excellent start would be for them to issue the seventh generation COWs now, not in 1998 or beyond.
Here is the PCR news release:
Corporate strategy revised
Pacific Amber Resources Ltd PCR
Shares issued 12,330,046 May 29 close $1.61
Fri 30 May 97 News Release
Mr Hiro Ogata reports
The company is revising its corporate strategy. Up to the present time, the
company has concentrated on Indonesia where it has been aggressively
exploring four properties that were worked by local miners or have a past
exploration history confirming the presence of gold. Exploration results by
Pacific Amber Resources Ltd on these properties is encouraging indicating
that additional work is warranted.
The dramatic drop in the market prices of junior mining companies operating
in Indonesia, resulting from accusations that Bre-X improperly processed
their samples (PCR's stock has declined from over $9 to around the $1.60
level) has led the board of directors to reconsider its focus. This
thinking has also been reinforced by the difficulty of those companies to
raise additional exploration funds, by the uncertainty generated by recent
Indonesian government actions covering the granting of mineral titles and
by the government's stated intention of insisting on taking a substantial
interest in any new discoveries.
Due to the high cost and current difficulties associated with operating in
Indonesia for junior mining companies, Pacific Amber Resources Ltd has
significantly reduced its Indonesian exploration work. Drilling operations
there have ceased and field work reduced to geological mapping and hand
trenching on the Putussibau property, limited geological work on Gunung Mas
and care and maintenance on both Long Bangun and Tujang.
The company is actively seeking joint venture partners for its Indonesian
properties. Several major companies have shown a strong interest in the
Putussibau property and the company anticipates that a joint venture will
ultimately be consummated with a major mining company which, with its own
funds, would be in a better position to fully develop its Indonesian
interests. This will enable the company to conserve its $7 million treasury
for ventures outside of Indonesia, while maintaining its interest in its
high potential gold prospects in Indonesia.
Results From The Indonesian Properties
PUTUSSIBAU
Sapit-Setul Zone
Exploration by Dominion Gold Mines in 1985-91 located a strong gold anomaly
approximately 2,500 metres long by 100 to 700 metres wide, related to a
broad northeast zone of faulting. Dominion Gold Mines' and Pacific Amber's
trench results from this zone include:
Assay
Trench Length Au
No. (m) (g/t)
1 58 0.93
18 9 1.28
20 10 1.20
21 9 0.96
36 48 3.35
Twenty-five diamond drill holes totalling 6,535m were completed.
Significant results were:
Assay
Hole Interval Length Au
No. (m) (m) (g/t)
SS-01 0-183 183 1.05
SS-02 0-7 7 0.82
43-54 11 1.29
61-70 9 0.91
SS-03 336-345 9 6.97
410-418 8 1.16
SS-05 0-7 7 1.21
38-50 12 1.02
124-131 7 0.62
188-194 6 1.27
SS-07 22-28 6 0.52
30-40 10 0.84
SS-10 0-18 18 0.51
Assays are pending on a number of holes.
Semulubuk Zone
Soil sampling defined a zone approximately 1,450 metres long by 400 to
1,100 metres wide strongly anomalous in gold. It is defined by the >100 ppb
Au contour and contains values to 1996 ppb Au. A number of hand trenches
were excavated across prospective mineralization zones.
Significant results from trench sampling include:
Assay
Hole Length Au
No. (m) (g/t)
PCR 1 125 0.67
Incl. 64 1.08
38 1.46
PCR 2 7 0.96
PCR 6 71 0.75
Incl. 55 0.86
PCR 9 10 1.29
Gold in this zone occurs within quartz vein stockworks, hydrothermal
breccias containing tourmaline, sulphides and in a major cross-cutting
fault zone.
Lematak Zone
Exploration recently commenced in this area, which was known from previous
work by Dominion Gold Mines, to have significant gold in proximity to small
intrusive bodies. The following trench samples, by Dominion, came from this
zone:
Assay
Hole Length Au
No. (m) (g/t)
L1 52 1.58
L2 24 2.52
5 25 3.28
9 8 1.63
21 13 3.46
Within the Lematak zone, prospecting has defined a zone 1,250 metres long
by 250 metres wide, still open to the southwest, consisting of quartz vein
stockworks, quartz tourmaline pyrite to breccia and quartz pyrite breccia.
This is a new discovery, made in May 1997.
The work conducted to date on the Putussibau property covered only a part
of this large property. A number of other gold bearing areas have been
identified but to date have not yet been explored.
The company has been operating under a SIPP, an exploration permit covering
the period between COW application approved in principle to the granting of
the COW. There are considerable limitation as to the type of work permitted
during this period, including diamond drilling. For this reason, the
company limited its drilling to one area only.
Gunung Mas Property
This property, as a result of 100 years of local Dyaks and Dutch mining
activities, has a great number of old workings, consisting of surface pits
and shafts, large sluiced areas and some underground workings, now caved.
The company's work was concentrated in the area of the above workings,
which occur within two small granite intrusions in older sediments.
Geological mapping augmented by geochemical surveys. magnetometer and IP
geophysical surveys, and hand trenching were conducted during 1996 by
Pacific Amber. Gold is hosted in quartz veins and stockworks within a
quartz vein swarm in the intrusions as well as in breccia at the intrusive
sediment contacts. Geochemical results broadly correlate with geophysical
results, which follow a north to northeast fault trend.
This geophysics trend overlies the quartz vein swarm, which is at least 600
metres long by up to 300 metres wide. The geophysics results infer that
this vein swarm extends at least 500 metres further on strike and under
shallow sediment cover.
Numerous hand trenches were made in areas of interest. They returned a
number of short, but significant, sections assaying between 1.0 to >5,0 g/t
Au over 1 to 4 metres; confirming that these vein swarms are gold bearing.
The following are examples of some of the more significant trench results
obtained.
Assay
Hole Length Au
No. (m) (g/t)
Jolungin Tr 1 6 6.81
(high values cut to 10 g/t)
or 6 12.85
(un-cut)
Jolungin Tr 2 5 1.28
Takujak Tr 2 3 0.75
Teluk Tr 11 20 1.19
Kereng Crook 4 5.09
Lapan Creek 3 2.54
Uyuh Creek 2 6.86
Parang 2 5.38
Batu Api 7 4.43
The company's objective is to define a large tonnage, bulk tonnage, low
grade deposit hosting >1,000,000 ounces of gold.
Company's New Focus
The company is now evaluating property acquisition opportunities in Nevada
and Peru. They were selected because of the potential for large size
deposits, the political stability, excellent infrastructure and the
management's' contacts in these areas. The company is well financed to
undertake now highly prospective projects.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
