News release:
Buduk mining permit received
Alliance Pacific Gold Corp APG
Shares issued 12,503,627 Mar 16 close $0.34
Tue 17 Mar 98 News Release
Mr Brian Lueck reports
The Buduk KP has been issued a mining licence from the Indonesian
government which includes the right to heap leach mine. It is the first
heap leach permit ever issued in Kalimantan. The company has entered into
an agreement with MRA Consultants, whereby MRA will mine the eluvial gold
resources on the Buduk property. In this agreement, eluvial is defined as
all unconsolidated material within the property from surface to a maximum
depth of 10m. On the assignment of Alliance's rights, MRA will grant to
Alliance an 8% carried profit interest in any mining operation undertaken
by MRA on the eluvial resources. Alliance retains 100% of its interest in
any hardrock deposits on the property.
Under the terms of the agreement, MRA is obligated to provide additional
exploration work on the property. The program will consist of a diamond
drill program of 2,500m and related field and office activities, including
supervision by the principals of MRA. Alliance will advance funds to MRA to
cover the cost of assaying, fuel, labour and camp consumables. Alliance's
expenditures for the entire program will total approximately US$115,000.
The company's goals for the approaching exploration program are to test
numerous anomalous zones outlined by the 1997 IP and resistivity survey and
to upgrade current drill indicated resources to the probable and proven
reserves category. Priority will be given to the extremely strong
chargeability anomalies which produced three east-west trending zones.
These zones extend over 1,400m in an east-west direction and are only
partially tested or not tested at all.
The drilling program conducted by the company in 1996 and 1997 defined
stratabound and structurally controlled sediment hosted gold
mineralization. The gold mineralized zone, having an average grade of 4.49
g/t Au, has been traced over a strike length of 1,500m with an average
width of 10.56m. Drilling indicated vertical continuity to 150m below
surface; however, the zone is open below this level. Surface mapping and
sampling has indicated a total strike for the mineralized zone in excess of
3,500m. The company plans, with additional drilling, to extend the current
reserve base and to upgrade the geological reserve category.
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