FOR FURTHER INFORMATION PLEASE CONTACT:
Indo Pacific Resources Ltd.
Bruce Macdonald
Director
(403) 243-4578
or
Indo Pacific Resources Ltd.
Wayne Golding
Director
011-675-325-3118 or 323-5511
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE
CONTENTS OF THIS PRESS RELEASE.
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: INDO PACIFIC RESOURCES LTD.
ASE SYMBOL: IPF
JANUARY 16, 1998
Indo Pacific Resources Ltd. Reviews 1997 and Outlines
Exploration Plans for 1998
CALGARY, ALBERTA--Indo Pacific Resources Ltd. (IPF.ASE) is pleased
to report its plans, both corporate and exploration, for 1998.
CORPORATE OVERVIEW
In 1996 $5.5 million was raised which funded exploration programs
into 1997 and enabled the purchase of 6 exploration licenses from
Highlands Gold. In early 1997 Watts Griffis and McOuat Limited
completed an independent geological report on all of the company's
mineral holdings as part of a significant Canadian fund raising
which was under negotiation. Subsequent events undermined this
financing initiative and Indo Pacific redirected its financing
efforts to Australia and Papua New Guinea. Although the financial
community responded positively to the company's overtures, the
subsequent sharp decline in the price of gold and copper resulted
in an indefinite deferral of these plans. Various joint venture
discussions continue; however, the environment is intensely
competitive with preference being given to very advanced projects.
In June, Indo Pacific was successful in raising $750,000 from
several Papua New Guinea sources, including members of the
management group and original seed capital investors. This group
invested an additional $150,000 in September, 1997 and has pledged
a further $230,000 during the first quarter of 1998. These funds
have been used to fund full scale exploration operations on a
select number of licenses through the fall of 1997 and reduced
programs thereafter. The company is presently assessing several
fund raising alternatives.
During the course of the year Indo Pacific reduced its operating
costs to $30,000 per month, which includes all office expenses,
clerical personnel, staff and consulting geologists and
miscellaneous costs. Two senior personnel were rationalized, the
number of national geologists was reduced to five and one
geophysicist/computer draftsman and one accountant/controller have
been retained. Mr. Karl Jensen assumed the role of Chief
Geologist and Peter Macnab relinquished his position as president
and adopted the role of a consulting technical advisor. Mr.
Macnab continues to serve as a director of the Company. Mr. Wayne
Golding was appointed a director and is managing the Papua New
Guinea operations. Mr. Hii Yii Ann of Port Moresby, an original
seed capital investor, has been appointed a director of Indo
Pacific Mining (PNG) Limited, the company's wholly owned
subsidiary. Mr. Peter Slaughter resigned as the company's chairman
late in the year and this office remains vacant.
1997 EXPLORATION SUMMARY
Exploration was concentrated on four licenses: Bowutu Mountains,
Dawa Dawa, Ambunti and Sumwari.
BOWUTU MOUNTAINS
At Bowutu Mountains three soil grids were completed. Results
delineated two areas of anomalous gold, the first an irregular
area of 80 to 100 metres across near the main occurrence of high
grade sub out-crop boulders in the Du River headwaters. The second
is a linear northeast trending zone more than 200 metres long with
two distinct centers of higher values. Two principal hosts for
high grade gold mineralization have been identified in the area:
a) vein quartz and related silicified breccia with minor sulphide
and b) dark sulphide healed breccia. Float samples collected in
the eastern tributary of the Du River near the main sub-outcrop
exposure returned values of 5.2, 5.4, 12.3, 35.3 and 133.6 (check
assay 138.4) g/t gold, with anomalous copper, zinc and arsenic.
Four float samples were also collected in the western tributary of
the Du River and returned values of 12.6, 12.8, 30.7 and 234.0 g/t
gold with minor copper, zinc, silver and one high lead value of
0.55 percent, as well as strongly anomalous arsenic. Dark sulphide
healed breccia is responsible for a gold occurrence one kilometre
to the southeast of the main sub-outcrop where values of up to
30.9 g/t gold have been recorded in breccia float. Two ridge and
spur soil lines completed returned anomalous values, but no
further work has been completed in the area. Bulldozer trenching
completed in the eastern part of the first soil anomaly exposed
shallow dipping quartz veins between 20 centimetres and 3 metres
in width. Gold in channel samples in and adjacent to the veins
range from 0.5 to 27.7 g/t gold, the latter over a 1.8 metre true
width. Bulldozing was suspended before bedrock was uncovered in
the western part of the anomaly, where large sub-outcrop
quartz-sulphide boulders are interpreted as being derived from a
feeder to the vein. Soil anomalies in the second gold zone have
not been trenched. Further sampling and geophysics are needed to
identify drill targets. The prospect continues to be an attractive
target for bonanza grade gold.
DAWA DAWA
At the Dawa Dawa license work was completed on two prospects: Mt.
Haluba and Ulo Ulo. At Mt. Haluba drill results confirmed the
presence of gold in a secondary blanket. The probable average gold
grade is approximately 2 g/t; however, because of the relatively
shallow depth of weathering the total amount of gold present in
the tested area and possible extensions is unlikely to exceed
20,000 ounces. At Ulo Ulo drill results indicate that, in spite of
gold enrichment in the surface soil, no secondary blanket exists.
Future exploration will target the five remaining prospects not
yet explored as well as following the mineralized Ulo Ulo
structure to the northeast and southeast.
AMBUNTI
At the Ambunti license, fieldwork was conducted on the Banang and
the Waskuk prospects. On Banang channel sampling in several short
hand dug trenches, positioned to locate the edge of the
mineralization, returned apparently inconsistent gold values.
Horizontal channel samples up to 5 metres long taken from the
lower extremities of the new trench walls returned values of 1.4,
1.6. 3.7, 5.5, 5.6, 15.2, 15.3 and 34.5 g/t gold, while vertical
channels immediately above these samples contained values mostly
less than 0.1 g/t gold. A computer analysis of a recently
conducted ground magnetometer survey is needed to further
interpret the structure. Two adjacent areas of mineralization were
outlined by hand dug trenches at the Waskuk prospect.
SUMWARI
At the Sumwari license, two geologists and two senior field
assistants conducted continuous exploration in the Kru River
alluvial area from May through October. Detailed geological
mapping was conducted throughout the area including stream
sediment sampling and dish prospecting, followed by base of slope
and ridge and spur soil sampling as well as hand dug trenching.
Over 2,000 samples were collected. The structure of the area is
dominated by the Leonard Schultz Fault Zone and is geologically
similar to the copper-gold mineralized Frieda River area located
approximately 60 kilometres to the west and along this fault.
Initial work has identified the Kru River prospect, a mineralized
zone, more than 2 kilometres long and up to 500 metres wide, which
is related to quartz-sulphide veining in altered dioritic
intrusives. The anomaly is defined by gold-in-soil values above
0.05 ppm, enclosing coherent patches of higher values mostly in
the range of 0.2 to 1.2 ppm. Assay results from soil sampling and
trenching work are expected within the next 30 days. Preliminary
results are encouraging and continue to confirm the Kru River area
as a target with major potential for both primary mineralization
and secondary gold caps to the point that Indo Pacific has applied
for an additional 2,530 square kilometre exploration license
extending east and west of the Sumwari license until it abuts two
Highlands Pacific licenses. This application was made to cover
extensions of the mineralization model now established as the main
source of alluvial gold in the Sumwari license, and contains areas
of known mineralization.
1998 EXPLORATION PROGRAM
Indo Pacific's 1998 exploration efforts will be concentrated in
areas with demonstrated potential for world class gold or
copper/gold deposits. Only programs designed to clearly define the
potential of these prospects and to indicate drill targets will be
conducted. The company believes that Sumwari, Star Mountains and
New Hanover hold such potential. Activity on Indo Pacific's
remaining license areas will be limited to a sharply focused
program of identifying the most promising prospects and
relinquishing excess land thus greatly reducing the minimum
expenditures necessary to retain these interests. By following
this strategy, and keeping operating costs to a minimum, the
company believes that it can meet its operating costs and conduct
the below described 1998 exploration program on a budget of
$1,250,000.
SUMWARI
At Sumwari, including the area under application, a ground
magnetometer survey will be completed and initial drill targets
will be identified at the Kru River prospect. Reconnaissance
sampling will be conducted on other portions of the license
including the Wasi porphyry mineralization as well as the early
1970's copper drill sites of US Steel and other Highlands Gold
indicated anomalous gold areas. In addition, geological mapping
and sampling will be conducted on the Nuwe and Weisas River
copper-gold occurrences (located in the 1970's, but never followed
up) which are located in the new application area.
STAR MOUNTAINS
At Star Mountains, a ground magnetometer survey will be conducted
in the Tabubil Block over an anomalous copper-gold area to
establish the suspected presence of shallow intrusives under a
thin sedimentary cap. Earlier generation prospecting trenches
which recorded interesting gold values in weathered bedrock at the
Bolovip Block will be re-located and re-opened and additional
detailed reconnaissance will be undertaken.
NEW HANOVER
At New Hanover, detailed reconnaissance of selected prospects will
be completed, including BLEG stream sediment sampling and soil
sampling as well as ground magnetometer surveys. Further detailed
mapping and sampling of the extensions of the Kuliuta prospect
will also be undertaken.
OTHER LICENSES
With relatively minor expenditures, drill targets will be
identified at the Ambunti, West New Britain, Kairiru Island,
Gazelle Peninsula and Wide Bay licenses. Drilling will be
undertaken when budget permits or a suitable joint venture partner
is identified. Specific programs will also be undertaken at Dawa
Dawa (reconnaissance), Bowutu Mountains (ground geophysics to
identify drill targets), Middle Waria (reconnasissance), Henganofi
(mapping, sampling and limited ground geophysics) and Strickland
Gorge/Lake Kopiago (prospecting of the Ku and Tabe intrusive
stocks as well as the Lower Bulago River).
Indo Pacific Resources Ltd. is a mineral exploration and
development company that seeks to identify and exploit precious
and base metal opportunities in Southeast Asia. The Company's
focus is gold in Papua New Guinea, a country renowned for its
world class mines. The Company holds more than 5,500 square kms
of prospective ground, under 12 exploration licenses, including 2
joint ventures and has applied for a new license over
approximately 1,000 square kms. Interesting gold occurences havd
been identified on every license, with several also showing
significant copper potential.
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