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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. -- Ignore unavailable to you. Want to Upgrade?

To: alan holman who wrote (27762)	2/26/1998 10:27:00 AM
From: alan holman	Read Replies (1) \| Respond to of 28369

INDO METALS LTD. ANNOUNCES 42 NEW BASE METAL-SILVER-GOLD SHOWINGS DISCOVERED ON THE MALUKU JOINT VENTURE'S AMBON ISLAND PROPERTY VANCOUVER, Feb. 26 /CNW/ - INDO METALS LTD. Trading Symbol: IOM.V Indo Metals announces that the results of the exploration conducted during the second half of 1997 on its Maluku Joint Venture Ambon Island property in Indonesia resulted in the discovery of 42 new base metal-silver(plus or minus)gold showings. These results have significantly increased the potential for the discovery of high-grade, silver-rich, polymetallic base metal deposits and porphyry copper deposits. The aggressive prospecting and mapping programs on Ambon Island discovered 42 new mineral showings, of which 23 are in outcrop and 19 as boulders and float trains. All of the new showings occur relatively close to the coast, within six kilometres of tide water. Prospecting and mapping on the equally prospective interior of the island in 1998 will require helicopter support. Grab sample values from some of the various occurrences recently discovered on Ambon Island include: << Occurrence Status Copper(%) Lead(%) Zinc(%) Silver (oz/t) Tomu Outcrop 1.2 4.5 5.0 1.9 West Tomu Float 21.8 0.1 0.1 0.5 Rose Outcrop 1.0 0.6 5.5 0.1 Hulung Outcrop 1.4 - 4.4 0.1 Nahaii Outcrop 3.9 - - 0.1 Buyang Outcrop 1.1 - - 0.1 East Kahuli Outcrop 1.0 2.2 7.8 3.6 Larike Float 0.2 6.0 2.8 8.7 Luang Outcrop 0.9 7.0 6.2 3.9 Luang North Outcrop 1.1 9.1 7.6 17.7 >> The 42 showings discovered to date on Ambon Island can be divided into three main types of mineralization: (1) high grade polymetallic Cu-Pb-Zn-Ag sulphides occurring as replacement mineralization in breccias and volcanics; (2) base metal quartz vein epithermal-style mineralization; and (3) disseminated chalcopyrite mineralization in altered dioritic intrusions. These various styles are associated variably with propylitic, argillic, and sericitic alteration. These types of mineralization are probably related to portions of a porphyry-centred system with alteration and base metal mineralization peripheral to a central porphyry. The overall setting may be somewhat similar to other major base metal-silver belts such as the eastern Cordillera of central Peru and Guanajuato district in Mexico which host a variety of epithermal and manto-type polymetallic deposits. In Peru, a similar geological environment hosts Cu (plus or minus) Zn porphyry related deposits (eg. Antamina) and more distal, large (greater than 60 mt), high grade, base metal replacement deposits related to late breccias and intrusions (e.g Cerro de Pasco). The Hulung, Nahaii, and Buyang Cu-rich prospects located on the northwest coast of Ambon Island occur in a cluster within a 13 km by 7 km area characterized by stream sediments containing anomalous copper values. The Hulung and Nahaii prospects are hosted by volcanic rocks and represent volcanic and/or breccia hosted base metal replacement deposits; these may be considered typical of Ambon polymetallic mineralization. The Buyang copper showings are hosted by both altered leucodiorites and volcanics. The Buyang mineralization is considered to be part of a porphyry system. The results from the limited work completed to date indicate the area has significant potential to host a porphyry copper deposit. The Larike, Luang, and Luang North showings at the southwest tip of Ambon Island occur within a 6 km by 4.5 km area containing nine outcrop or float mineral occurrences. The mineralization and alteration is typical Ambon type mineralization found peripheral to porphyry systems. It is important to note that the sample from Luang tabled above also contained 1.2 g/t gold. In the Kahuli area on the north side of Ambon Island, about nine km east of the Hulung, Nahaii and Buyang showings, a total of seven bedrock and two float occurrences were discovered over an area roughly 3 km by 1.5 kilometres. The heavily disseminated sulphide mineralization here is similar to that at the Wai Ira deposit on neighbouring Haruku Island and occurs as the matrix within coarse felsic agglomerates. The grab sample of the sulphide rich matrix at East Kahuli listed on the table above also contained 1.16 g/t Au. Channel sample values include 0.4% Cu, 1.5% Pb, 5.6% Zn, 0.8 oz/t Ag, and 0.36 g/t Au over 2 m, and 0.2% Cu, 1.1% Pb, 1.8% Zn, 0.4 oz/t Ag, and 0.18 g/t Au over 4 metres. The Rose and Tomu occurrences, listed in the table above, also occur in the Kahuli area. The 1998 exploration program, budgeted at US$2 million, will start in March and continue throughout the year. The program will focus on prioritizing the showings warranting immediate follow-up, and continuing the prospecting program by helicopter in the interior of the island. High priority areas will be gridded and subjected to detailed surveys, leading up to a drill program. The Maluku Joint Venture properties consist of over 100,000 hectares held in part by a signed 7th Generation Contract of Work (CoW) covering Haruku Island and west Ambon Island and in part by applications for 8th Generation CoWs covering Nusa Laut and Saparua Islands and portions of Ambon Island. The properties are held under an agreement with Ingold Holdings Indonesia Inc., a wholly owned subsidiary of Inco Limited (Inco) of Toronto. The agreement grants Indo Metals the right to earn a 49 percent interest in Inco's 85 percent interest in the Maluku properties. P.T. Aneka Tambang, a state-owned Indonesian mining company and minority owner in the Maluku properties, has a 15 percent interest in the Maluku Joint Venture. On Behalf of the Board of Directors James D. Clucas, President The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this new release. -30- For further information: The Investor Relations Group, (604) 689-5255, Toll Free: 1-800-444-9214