Attention Business Editors:
INDOCHINA GOLDFIELDS REPORTS DISCOVERY OF POTENTIALLY SIGNIFICANT
POLYMETALLIC MINERALIZATION AT THE SEKATAK PROJECT IN NORTHEAST
KALIMANTAN, INDONESIA
SINGAPORE, July 21 /CNW/ - R. Edward Flood, President, and Robert M.
Friedland, Chairman, are pleased to announce results of ongoing exploration
activities at the Sekatak prospect located in Northeast Kalimantan, Indonesia.
A potentially significant polymetallic stratabound mineral system has been
discovered in the course of work completed in the project area during the past
few months. In addition, extensive vein and breccia mineralization has been
identified in the same locality, which the company's geologic team has
interpreted as the surface expression of a buried copper-gold porphyry system.
The principal zone of mineralization at the Sekatak prospect is found
within a geochemically anomalous district, which covers an area of
approximately 25 square kilometres. Sekatak is conveniently located near tide
water in the company's Central exploration block and is easily accessible from
Indochina's Tarakan field office, approximately 30 kilometres to the east.
Mineralization occurs primarily as stratabound replacement-style
zinc-silver-lead mineralization, with subordinate polymetallic
mesothermal-style veins and breccias hosted within a northwest-trending zone
of calcareous sediments. The replacement-style mineralization occurs as
repetitive zones up to two metres thick, containing up to 35% sphalerite and
3% galena, within a 50-metre-thick horizon that is traceable over a strike
length in excess of one kilometre. To date, soil sampling has defined a
plus-100 ppm lead anomaly which outlines the one-kilometre-long main area of
mineralized outcrops and extends a further 600 metres to the southeast. The
lead anomaly averages between 300 and 600 metres in width and is open ended to
the southeast. Zinc geochemistry displays a 600-metre by 100-metre anomaly
over the main replacement zone, with a peak value of 1,010 ppm located
approximately 400 metres along strike to the southeast.
The polymetallic veins and breccia mineralization occur as crosscutting
features both within and adjacent to the replacement mineralization in the
Sekatak area. Both styles are highly anomalous in zinc, silver and lead, but
the veins and breccias also contain high values of copper and gold. Individual
veins, up to five metres in width, can be traced for more than two kilometres
in the southern portion of the project area. Breccia bodies occur as
northeast-trending zones commonly reaching 100 metres in width and which are
well developed in an area of approximately 12 square kilometres in the central
and northeast areas currently under investigation. To date, more than 1,000
composite rock chip samples have been collected from outcropping
mineralization in the Sekatak area. Representative assay results of the
various styles of mineralization are listed below.
Replacement Zinc-Silver-Lead Mineralization
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(Gold - Au, Silver - Ag, Copper - Cu, Lead - Pb, Zinc - Zn)
From 49 samples collected from within the zinc-lead replacement zone, the
following averages have been calculated:
Au (ppm) 0.05 ppm Au with a maximum of 0.33 ppm Au
Ag (ppm) 30.84 ppm Ag with a maximum of 294 ppm Ag
Cu (%) 0.14% Cu with a maximum of 0.76% Cu
Pb (%) 0.39% Pb with a maximum of 1.74% Pb
Zn (%) 2.12% Zn with a maximum of 14.0% Zn
Zn + Pb (%) 2.51% Zn+Pb with a maximum of 14.48% Zn+Pb
Polymetallic Veins
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From 58 samples, the average grade for this style of mineralization is:
Au (ppm) 0.53 ppm Au with a maximum of 4.62 ppm Au
Ag (ppm) 104 ppm Ag with a maximum of 830 ppm Ag
Cu (%) 0.35% Cu with a maximum of 5.3% Cu
Pb (%) 2.54% Pb with a maximum of 30.6% Pb
Zn (%) 2.71% Zn with a maximum of 30.7% Zn
Breccia-Style Mineralization
----------------------------
From 717 samples, the top 10% (72 samples) of all assays from this
mineralization style has returned the following averages:
Au (ppm) 0.91 ppm Au with a maximum of 4.90 ppm Au
Ag (ppm) 178 ppm Ag with a maximum of 812 ppm Ag
Cu (%) 1.18% Cu with a maximum of 10.8% Cu
Pb (%) 0.97% Pb with a maximum of 7.20% Pb
Zn (%) 1.19% Zn with a maximum of 9.70% Zn
All rock-chip samples were analyzed using atomic absorption for base
metals and fire assay for gold and silver. The laboratory used for all
analyses was the internationally accredited P.T. Indoassay, which is based in
Balikpapan, Kalimantan.
An aggressive work program is currently in progress to further evaluate
the potential of Sekatak. This will include 1:2,000-scale geologic mapping,
grid soil sampling on a 100-metre x 25-metre spacing and detailed rock-chip
and channel sampling. As a result of the relatively simple geology of the
replacement-style mineralization, a drill program is being organized to
immediately test the outcropping zone. Additional work will be directed
toward a better definition of the vein and breccia systems and to test the
hypothesis that they may be a near-surface manifestation of a much larger
porphyry system at depth.
Indochina Goldfields currently has 71.7 million outstanding shares and
had a cash balance of US$65.7 million as of June 30, 1998. The company's
assets include the Monywa Copper Complex in Myanmar, currently projected to
begin production in the third quarter of this year, as well as various gold
interests in Myanmar, Indonesia, Kazakhstan, Thailand, South Korea and Fiji.
The company's shares trade on the Toronto and Australian stock exchanges under
the symbol ING.
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For further information: R. Edward Flood, President, North America
(604) 688-5755, Web site goldfields.com |
