Promising NEWS
Java Gold Corp -
Mongolia and Indonesia activities
Java Gold Corp JVAGShares issued 240459111997-08-12 close $0.45Wednesday Aug 13 1997Mr William Burton reports Mongolian Exploration Update The Java Gold exploration program in Mongolia aims to confirm and validate the available technical information on the highest priority targets within each licence area. This is being achieved through systematic mapping, sampling and geophysical surveying. A diamond drill will be available to the exploration program during late September and October to test some high priority gold targets. Dashbalbar Licence (398,900 ha) The three main prospects within the Dashbalbar licence are within a target area measuring 18 x 10km known as the Tsagaan Chuluut district (White Rock district) straddling the southern fault boundary of the Dashbalbar uplift zone. Major cross structures cut the uplift zone in this region associated with multiple phases of Jurassic intrusions. Significant gold mineralization is related to replacement zones and quartz veins (Tsagaan Chuluut I), brecciated volcanics (Tsagaan Chuluut II) and epithermal zones (Grid III). Extensive explosive breccia and felsic volcanic sequences have been observed. All mineralization is reported to be related to Jurassic events. Airborne magnetics has identified a large (6 x 2km), intense magnetic anomaly underlying the Tsagaan Chuluut district which may have a relationship with the widespread silicification, brecciation and gold mineralization. Besides the multiple hardrock gold prospects, numerous active placer gold operations are found in this area. The Tsagaan Chuluut area is considered by many Mongolian geologists to be the best gold target in Northeast Mongolia. Rock chip, soil sampling and geologic mapping has been completed over Tsagaan Chuluut I (22km of line) and II (40.8km of line). A gold soil anomaly defined at Tsagaan Chuluut I measuring 400m x 700m and averaging over 250 ppb gold (0.25 g/t) is now being evaluated by mechanical trenching. This area lies adjacent to an active placer gold mine. Geophysical surveys and diamond drill testing are planned for this season. Geochemical sampling at Grid III (60km of line) is in progress. In addition, two targets outside the Tsagaan Chuluut district have been visited: a black shale platinum occurrence and the Erdene Tolgoi gold/copper skarn. These prospects will be assessed in more detail in the latter part of the field season. Salkhit Licence (399,500 ha) The Salkhit Licence area lies 100km southwest of the Dashbalbar licence along the same structural trend. The three main prospect areas are Tsagaan, Salkhit and Bayan Ovoo. Java Gold geologists are currently exploring these prospects as well as mineralized hardrock source areas adjacent to several active placer mining sites. The Tsagaan prospect is characterized by a circular, altered and silicified granite complex overlain by conglomerates and siltstones occurring in a graben. Gold mineralization (1-2 g/t) has been reported in a silicified cap with stockwork type quartz and quartz-fluorite veins. The gold mineralizing system is interpreted to be epithermal. Exposure is limited over the target area which is greater than 2km in diameter. Analogies have been made (Richard H. Sillitoe) between Tsagaan and the 10 million ounce Baley deposit, 200km northeast in Russia. Zavhkhanmandal Licence (372,200 ha) Soil, rock chip sampling and geologic mapping are under way on four prospects on the Zavhkhanmandal licence (Zuun Shuvuu uul, Shuvuun Khar uul, Zavhkhanmandal and Berkheer Khar uul) and sample results are pending. At the Shuvuun Khar uul prospect, trench K170 exposes intensely folded green schists cut by a quartz vein (approximately 50cm to 1m wide) and a shear zone (2m wide). The trench is situated on the flank of an anticlinal hinge and the veins and mineralized zones are believed to be occupying favourable structures associated with the fold. Trench K-170 returned 5.39 g/t gold over 9.0 metres. Additional trenching is under way 60m south and 200m north along the trend of the veins. In addition a 1 sq km area of detailed geochem sampling is being completed over this zone. Ikh Bogd Licence (398,600 ha) Mineralization at Ikh Bogd, associated with disseminated sulphides and quartz stockworks in sandstone and skarn zones replacing limestones and mafic volcanic units, has been reported by previous workers. Little gold exploration has been carried out in the mineralized regions of the Ikh Bogd area which have typically been evaluated for copper mineralization. A preliminary prospecting evaluation will be completed this season. Baruun Khurai Licence (314,000 ha) The Baruun Khurai area is underlain by oceanic sedimentary and volcanic rocks of Carboniferous age. Mineralization in the area occurs as massive sulphides hosted in ophiolites and gold/antimony in quartz stockworks. This licence will also be evaluated during a preliminary reconnaissance visit this season. Placer Gold Production Initial gold production by Java Gold on the Gazar Toson property in the Zaamar Valley of Mongolia has further confirmed the potential of this area for sustained production of gold from high grade placer deposits. Detailed resource evaluation has been completed and the optimum process equipment requirement determined. This resource, currently calculated at 225,000 ounces of gold, has been identified by drilling on a 700m x 50m grid. This area lies in a dry terrace alluvial bed 10 to 30 metres above the current course of the Tuul River. Java Gold has two gold production plants in the Zaamar area within the Gazar Toson mining licence, 100% owned by the company. The head grade of the material now being processed is 1.2 grams of gold per cubic metre (approximately 0.80 g/t gold). Having now overcome the delays caused by problems associated with the transportation and importation of equipment, infrastructure and logistics (power grid failure) gold production is now increasing and further equipment has been acquired to gain maximum efficiency from the current Zaamar operations of Java Gold. Further plant capacity is planned for the spring of 1998. The following is a review of the placer gold resources controlled by Java Gold:
Ounces
of Gold
Location Contained Status Ownership
-------- --------- ------ ---------
Gazar 225,000 Mining 100%
Under way
Toson
Alluvial 487,000 Drill 100%
Testing
Tas 180,000 Engineering 80%
Studies
Kendeng Project (22,000 ha) - Indonesia The Kendeng property in West Java has been the subject of an extensive exploration program over the last four months. Java Gold has an agreement to acquire a 100% interest in Kendeng. The work included airborne geophysics, stream geochemistry, geologic mapping, prospecting, and trenching. Of particular interest resulting from this work is the coincidence of a large circular geophysical anomaly with a group of newly identified mineralized showings and extensively altered rocks. To date four priority gold prospects have been located; Leuwikopo, Cipariuk, Kerta and Parikan-Lima. The Leuwikopo prospect is associated with an altered sequence underlying a chalcedonic ridge. A recently discovered outcrop zone returned 4.1 g/t gold over 5.8 metres. Cipariuk has been identified within the geophysical anomaly as a widespread sulphide rich epithermal system. One stream valley here, was recently found to contain numerous mineralized boulders grading up to 15 g/t gold. A local source is suspected and ground geophysical surveys and trenching are planned. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
