Is there a Mining Engineer or Geologist in the house?
I am wanting someone out there to interpret the following press release of July 21, 1998:
>>>
For Immediate Release July 21,1998
Indochina Goldfields Reports Discovery of Potentially Significant Polymetallic Mineralization at the Sekatak Project In Northeast Kalimantan, Indonesia
Singapore - 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
[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
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.
For further information, please contact:
R. Edward Flood, President
North America 604 688-5755
Web site: goldfields.com <<<
The info sounds good, but I cannot interpret just how promising this is.
Any help is greatly appreciated!
With this discovery, the other properties, production from the Myanmar copper mine beginning next month, and US$0.92 / share in CASH, this stock should be DOUBLE what it currently is. Talk about a depressed stock and sector! This stock appears to be an absolute steal. WHAT IS GOING ON???? |
