Hello Bobby,
I started to follow Colony Pacific in August/September but didn't buy any because I thought things would not begin until 1997. Why did the stock shhot up? READ the press release below. This Aceh area WILL BE a vry hot area in the very near future. Only majors have property in the area (except for Colony and Dunlap) - i.e. Barrick, Tech, RTZ, Bre-X, and now Inco. Here's the news:
Colony Pacific Explorations Ltd - News
Release
Colony/Inco option Aceh property
Colony Pacific Explorations Ltd CYX
Shares issued 15,050,218 Dec 3 close $4.65
Wed 4 Dec 96 News Release
Also Inco Ltd (N)
Mr Pierre Lebel reports
The Colony-Inco Limited Strategic Alliance for the island of Sumatra is
continuing to increase its activities and has entered into an option to
acquire a 60% interest in the Aceh gold-copper property. The Aceh property
hosts a newly discovered porphyry gold copper prospect and a new gold
prospect and has excellent potential for world class gold and copper
deposits.
The Aceh property option has been acquired from Highlands Gold Limited of
Australia. This large property is in northern Sumatra and covers 6,836 sq
km. The property is held under a signed fifth generation contract of work
and, in part, under an application for a sixth generation contract of work.
Two discoveries have been made - the Miwah gold prospect and the Beutong
gold-copper prospect. More than US$5.0 million has been spent exploring the
property during the past two years resulting in the Miwah and Beutong
discoveries and identification of at least 17 untested high-priority
targets.
At the Miwah gold prospect, surface sampling, geochemistry and geophysics
have outlined an extensive area of gold mineralization. Results from a
preliminary 13 hole, 3,144 metre drill program include 1.4 g/t gold over 71
metres and 1.0 g/t gold over 58 metres. Enargite boulders, grading 10% to
20% copper discovered adjacent to the prospect area, suggest that the Miwah
gold prospect may be related to a porphyry gold-copper system.
The Miwah gold prospect is exposed at surface and is open in all
directions. It is presently undergoing further testing and evaluation by
geological mapping, geophysics and drilling.
The discovery of the new Beutong gold-copper prospect was made in August of
this year as a result of prospecting and follow-up on one of Highland's
regional stream sediment anomalies. Surface trench sampling returned assay
values of 1.0% copper and 0.2 g/t gold over 10 metres, 0.82% copper and
0.27 g/t gold over 18 metres, and 1.67% copper over 4.5 metres. These
values are from a quartz stockwork containing copper mineralization in a
diorite intrusive which exhibits typical porphyry copper styled alteration.
Drilling of the altered intrusive with a small man portable drill was
started in late September and is continuing. The discovery hole at Beutong
intersected 120 metres of altered porphyry and skarn copper mineralization
grading 1.06% copper. The hole bottomed in mineralization. The prospect
remains open in all directions. Geological mapping, geophysics and
extensive diamond drilling are required to further test this new porphyry
gold-copper discovery.
Expenditures over the next 12 months are budgeted at US$3 million to
continue drilling the Beutong and Miwah prospects, follow up on other high
priority untested targets, and complete airborne surveys and stream
sediment sampling on the southern half of the property which has not seen
any work to date.
The Aceh option allows Colony and Inco to collectively earn a 60% interest
in the Aceh property by financing the next US$10 million on exploration
over a four year period. The combined effect of the Colony-Inco Strategic
Alliance terms and the Aceh property option terms are such that after
Colony has spent US$6 million on Aceh, it will be carried for the next
US$20.5 million in expenditures whereupon the interests of the parties in
Aceh will be as follows:
Colony 24%
Inco 36%
Highlands 30%
Indonesian Partner 10%
Highlands will continue as exploration operator for the next three years
providing continuity, experienced technical staff, drills and a helicopter,
all of which are now on site. Inco will provide logistical and technical
support and liaison with the government of Indonesia and have the right to
become the manager and put these two or any other discoveries into
production.
The acquisition of the Aceh property option provides Colony with an
immediate opportunity to be involved with the evaluation and further
development of two new advanced gold and copper discoveries and offers
extraordinary growth potential for Colony shareholders.
(c) Copyright 1996 Canjex Publishing Ltd. canada-stockwatch.com |
