JVAG starts gold production in Mongolia, Pursuit interest 14.5%
Gold production begins in Mongolia; new CEO
Java Gold Corp JVAG
Shares issued 24,045,911 Jun 6 close $0.50
Mon 9 Jun 97 News Release
Mr Stephen Dattels reports
Mongolian Alluvial Production
The company's two gold production plants have arrived at the Gazar property
in the Zaamar Valley of Mongolia. Commissioning of the plants began on May
25 1997 and full production is now being achieved. Java Gold expects to
operate the two plants through late October at a combined rate of 150 cubic
metres per hour. A third plant is planned for later this season - to be
deployed on additional properties acquired in the Zaamar area.
Java Gold acquired a 100% interest in the Gazar licence in December 1996.
The drill indicated recoverable gold resources calculated by the company
from prior Mongolian government surveys is approximately 225,000 ounces.
These reserves lie in dry terrace alluvials 100 to 400 metres from the
current course of the Tuul River.
A stripping ratio of 2.53 to 1:00 is required to reach the pay zone which
ranges from 1.3 to 3.6 metres in thickness. The 1997 production program
will mine two blocks which have an average grade of 1.21 grams of gold per
cubic metre. Assuming a recovered grade of 1 gm gold/m3 Java Gold has a
projected monthly production rate of 2,000 ounces of gold per month and has
budgeted production of 10,000 to 12,000 ounces for 1997 at an estimated
cash operating cost per ounce of $100.
Java Gold will also carry out a drilling program to increase the confidence
level of the drill indicated resource on the company's Toson Valley
alluvial licence. The Toson gold resource represents a true alluvial
deposit in the Tuul River, with a drill indicated resource of 487,000
ounces of gold at a grade of 0.48 gm/m3 as determined by previous Mongolian
geological work. There are several profitable gold dredges currently
operating in the Tuul River with similar reserves and grades.
The company is also evaluating the potential of a mining operation on the
TAS property. Java Gold secured rights to mine this property which has an
alluvial resource of approximately 180,000 ounces of gold. In total Java
Gold controls three alluvial gold properties with a total indicated
resource of approximately 800,000 ounces of gold with a gold production
target of 10,000 to 12,000 ounces this season.
Mongolian Hard Rock Exploration
Exploration teams are now mobilized to begin work on the company's five
hard-rock exploration licences in Mongolia. Each licence has been located
within a known gold belt and incorporates numerous known gold showings. At
least three priority targets have been identified for drill testing this
season and additional targets will be tested by geophysics and trenching.
Indonesia Hard Rock Exploration
In Indonesia, Java Gold is exploring the Kendeng property in West Java. A
program of airborne geophysics has recently been completed, and these
results together with the discovery of additional gold bearing outcrops
will assist in the definition of priority drill targets. A program of
diamond drill testing is planned for the second half of 1997.
Armand Beaudoin - CEO
Armand Beaudoin has been appointed as Java Gold's chief executive officer.
Mr Beaudoin is well known in the exploration field with extensive
experience in prospecting, project development and alluvial gold mining
operations. Mr Beaudoin was instrumental in acquiring the current assets of
Java Gold in Indonesia and Mongolia.
Java Gold, following its acquisition of Mongolian Goldfields, a private
company, on April 28, has approximately 24 million shares outstanding, and
as of April 1 1997 has a working capital of $5 million.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
