Mindoro resources - Strong Gold Anomaly Defined, Tiris Project, Sumatra,
Indonesia
Business Wire - March 02, 1998 09:46
%MINDORO-RESOURCES-LT MIO. %NEW-YORK %MINING %METALS V%BW P%BW
EDMONTON, ALBERTA--(BUSINESS WIRE)--March 2, 1998-- Mindoro Resources Lt(Alberta Stock Exchange:MIO.)
Mindoro Resources Ltd. ("Mindoro") announces stream sediment geochemical results from the western part of the Tiris
Contract of Work (CoW), Sumatra, Indonesia, confirming and defining an unusually large and strong gold anomaly.
The Tiris CoW was acquired by Mindoro to cover two stream sediment gold geochemical anomalies defined by a 1986
Japanese International Cooperation Agency (JICA) reconnaissance program. The western gold anomaly covered
approximately 16 square kilometres (km) with values ranging from 70 to greater than 10,000 parts per billion (ppb) gold, and
from 0.5 to 12.3 parts per million (ppm) silver. This JICA anomaly was defined by just 17 sample sites (sample density =
1.3/km2) and its location was imprecisely known due to lack of accurate topographic maps. While a small portion of the
westernmost part of the CoW is included within a jungle reserve that may be subject to restricted access, the anomaly and
likely source are outside of this area. Accordingly, Mindoro's first objective was to verify the anomaly and outline its extent
and precise location through detailed stream sediment sampling, prospecting and reconnaissance geological work.
The work was supervised by A. Buskas, P.Geo. (B.C.), and performed by exploration crews of PT Handal Srirajasa of
Jakarta, Indonesia, Mindoro's local geological consultant. To date, 288 stream sediment samples have been collected from
the western part of the CoW (sample density = 8/km2). Approximately 500 grams of sample were collected at each location
and these were sieved on site. The fine (-80 mesh) fraction was shipped to Intertek Testing Services (Bondar Clegg) in
Jakarta for analysis of gold, silver, copper, lead and zinc. The gold analyses were performed by fire assay using a 50 gram
charge and had a lower detection limit of 2 ppb. Ten standard samples were inserted into the batch. Gold analyses for the
standards varied within acceptable limits for these samples. An independent Australian laboratory is currently analysing a
comprehensive series of check samples.
The accompanying map summarizes the gold results. Gold values range from less than 2 ppb to 20,000 ppb, and average 694
ppb (1,000 ppb = 1 gram per tonne [g/t]). The greater than 100 ppb (.01 g/t) contour defines an area about 6 km by 5 km
which covers many drainage systems and is open to the east, north and south. The 1,000 ppb (1 g/t) contour covers several
unrelated drainage systems and extends over an area of 4 km by 3 km and is open to the south and east. The 2,000 ppb (2 g/t)
contour covers different drainages within an area of 3 km by 2 km and is open to the south and east. Silver values range from
less than 1 ppm to 17 ppm and averaged 1 ppm (1 g/t) across the entire area. An anomalous zone of silver, approximately 1
km by 1 km in extent correlates with the central-southern lobe of the gold geochemical anomaly and averages 4.8 ppm for 12
samples. More subdued copper, lead and zinc anomalies also correlate with the maximum gold values in the central-southern
part of that anomaly. Extent of these anomalies remain to be more fully defined, but all of Mindoro's anomalies and their
likely drainage sources fall within freely accessible areas of the Tiris CoW. A total of 55 float and rock chip samples were
also collected. Assay values ranged from less than 5 ppb to 11.7 ppm gold (1 ppm = 1 g/t), with an average of 0.314 ppm. In
the area of the stream sediment anomaly, PT Handal geologists reported the presence of extensive argillic and silica
alteration. Rock types noted in the area include rhyolitic to dacitic volcanic breccias, lithic tuffs, ashfall tuffs, welded tuffs
and andesites. This geological setting is believed to be similar to that of the nearby Rawas Mine, commissioned by Laverton
Gold N.L. in January of 1997, and with an annual production of approximately 80,000 ounces of gold equivalent. Immediate
plans call for continuation of the geochemical program to cover the eastern part of the CoW, which also includes several
JICA anomalies. Geological follow-up and evaluation of the western anomaly will commence in March. While Mindoro is
encouraged by the strength, size and geological setting of the stream sediment geochemical anomaly indicated by these
preliminary data, work to date is early-stage reconnaissance exploration and is neither extensive nor advanced enough to
accurately establish the importance of the project. Considerable additional geological and geochemical work is necessary to
quantify and characterise both the geochemical anomaly and its potential source. Mindoro is a well-financed, Canadian
mineral exploration company focussing on gold and gold-copper exploration in Asia, and operates, in addition to Indonesia,
projects in Myanmar and the Philippines. Mindoro has 13,365,000 shares issued and outstanding and working capital of
approximately $3,000,000. Coloured maps may be viewed on our website at mindoro.com
NOTE TO EDITORS: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
CONTACT: Mindoro Resources Ltd
Rodney Orr, P. Geo., 403/413-8187
403/426-2716 (FAX)
mindoro@mindoro.com
mindoro.com |
