BORNEO GOLD CORPORATION - DRILLING COMMENCES AT TANAH LAUT
Shares Issued: 28.6M
Fully Diluted: 35.5M
Working Capital (June 30, 1997) C$10.3M
Trading symbol: VSE - BNO
TORONTO, Sept. 23 /CNW/ - Borneo Gold Corporation is pleased to announce
it has commenced drilling at its Tanah Laut Contract of Work (CoW) area in
South Kalimantan, Indonesia. The objective of the program is to evaluate the
potential of the Tanah Laut area for shallow, oxidized gold in a large
tonnage, metasedimentary setting.
The host rock at Tanah Laut is similar to the geological environment of
the Brasilia Gold Belt, Brazil. The Brasilia Mine at Paracatu (Rio Tinto -
51%; TVX - 49%) which has been operating since 1987, produced 165,000 ounces
of gold in 1996. Cash costs of operation for the second quarter of 1997 were
US$201 per ounce. The global reserve grade is 0.44 grams per tonne. A
`Paracatu Type' Mine has no stripping and does not require drilling or
blasting, but does require crushing, grinding, flotation, gravity separation,
carbon in pulp, and carbon in leach processing.
Similar to Paracatu, the Tanah Laut area hosts a large metasedimentary
target where fine gold is unevenly distributed in clusters in the weathered
rock. The sampling procedure at Tanah Laut entails taking large representative
samples over the full depth potential of the target area. The initial drilling
program will consist of approximately 3,000m of shallow, large diameter,
vertical reverse circulation holes. Drilling will initially focus on the Rasnu
anomaly which is approximately 3,000 metres long by 100 to 400 metres wide.
Based on results at Rasnu, drilling will then be extended to sample additional
targets on the more than 5 km of soil geochemical anomalies identified over
the central block at Tanah Laut. Additional targets are thought to exist to
the northeast and southwest of the central block.
Work at Tanah Laut is being conducted by the Company's 90% owned
subsidiary PT Aurum Tanah Laut which signed a 6th Generation CoW covering the
980 square km Tanah Laut area on April 28, 1997. In addition to the signed 6th
Generation Tanah Laut CoW, Borneo Gold Corporation has a 90% interest in four
7th Generation CoW applications; Bunut, Tanah Laut Timur, Kahayan and North
Rumah. The Company's head office is located in Toronto, Canada and its main
operating office is located in Jakarta, Indonesia. The Company's common shares
trade on the Vancouver Stock Exchange under the symbol BNO.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. |
