TIDMAR.
RNS Number : 8492T
Archipelago Resources PLC
13 December 2011
For Immediate Release 13 December 2011
AIM: AR.
Archipelago Resources plc
("Archipelago" or "the Company")
Significant increase of resource at Toka Tindung Mine
Archipelago is pleased to announce a significant increase in
mineral resource estimates for two of its five deposits at the Toka
Tindung mine in North Sulawesi, Indonesia.
Highlights
Highlights include the following:
-- the resource at the Toka Tindung pit has increased to 38.2Mt
@ 1.2g/t Au for 1.47M contained oz Au (and 2.4 g/t Ag for 2.98M
contained oz Ag);
-- the Kopra deposit resource has increased to 3.63Mt @ 3.3g/t
Au for 388k contained oz Au (and 8.3 g/t for 969k contained oz
Ag);
-- excluding silver as gold equivalent ounces:
o contained gold resources have increased by 99% at the main
Toka Tindung deposit, and 313% at Kopra; and
o the total Measured & Indicated resource categories have
increased by 79% to 1.31M contained oz Au for the Toka Tindung pit;
and by 186% to 260,000 contained oz Au for Kopra;
-- modelling is currently underway for the Pajajaran, Araren and
Blambangan deposits, which is likely to lead to further increases
to resource estimates; and
-- the significant increases to the Toka Tindung and Kopra
resources support a review of the overall reserve inventory, that
is likely to be on the upside.
Comment
Mr Marcus Engelbrecht, Managing Director and CEO commented:
"The increase in resources at the Toka Tindung and Kopra pits is
an excellent result, achieved in a relatively short period. These
initial drilling results post construction, are encouraging and
confirms our view that our Toka Tindung Mine has considerably
longer 'life of mine' than the seven years outlined by the original
feasibility study. We are confident that this will lead to further
additions to our resource inventory in the near future, providing
the foundation for growth."
To view the full Resource Update announcement, including maps,
graphs and resource estimates, please download the following pdf
document:
http://www.rns-pdf.londonstockexchange.com/rns/8492T_-2011-12-13.pdf
Further details
In addition to the main Toka Tindung pit, the current mine plan
at Archipelago's Toka Tindung Mine includes four additional pits,
i.e: Pajajaran, Araren, Blambangan and Kopra. All pits are located
near to the processing infrastructure.
Commencing March 2011, Archipelago expanded its drilling efforts
at the Toka Tindung Mine, targeting prospective nearby mineralised
deposits. On a spend to date of circa US$9 million, initial efforts
have resulted in significant increases to resource estimates at two
key deposits: Toka Tindung and Kopra. Drilling continues at these
deposits and also at Pajajaran, Araren and Blambangan.
In a relatively short period, Archipelago has increased the JORC
compliant total resources as follows:
-- Toka Tindung pit : by 99% to 38.2Mt @ 1.2g/t Au for 1.47M
contained oz Au (and 2.4 g/t Ag for 2.98M contained oz Ag) ;and
-- Kopra deposit: by 313% to 3.63Mt @ 3.3g/t Au for 388k
contained oz Au (and 8.3 g/t for 969k contained oz Ag).
--
Relative to the prior JORC compliant resource, the Company also
reports material increases in Measured and Indicated categories at
both Toka Tindung and Kopra.
For the Toka Tindung deposit, contained gold ounces in the
Measured and Indicated categories are now estimated at 1.31M oz Au;
representing an increase of 79% (excluding additional silver
related gold equivalent ounces). At Kopra, the Measured and
Indicated resource has increased 186% to 260k contained oz Au
(excluding equivalents).
Please follow the PDF link on the first page of the announcement
and then refer to Figure 2 for a comparison of prior and revised
resources for Toka Tindung and Kopra. This demonstrates the scale
of adjustment to Measured and Indicated categories. Please also
refer to Figure 3 below for the 2011 resource estimates for the
Toka Tindung and Kopra deposits.
Figure 3: 2011 Resource Estimates for Toka Tindung & Kopra
Deposits
Category Tones Au g/t Contained Ag g/t Contained Contained
(000's) Au oz (000's) Ag oz (000's) Au Eq oz (000's)
----------- -------- ------- -------------- ------- -------------- -----------------
TOKA TINDUNG DEPOSIT
------------------------------------------------------------------------------------------
Measured 17,400 1.5 819 3.2 1,780 850
----------- -------- ------- -------------- ------- -------------- -----------------
Indicated 16,100 1 492 1.9 993 510
----------- -------- ------- -------------- ------- -------------- -----------------
Inferred 4,700 1.1 167 1.4 212 172
TOTAL 38,200 1.2 1,470 2.4 2,985 1,532
----------- -------- ------- -------------- ------- -------------- -----------------
KOPRA DEPOSIT
------------------------------------------------------------------------------------------
Measured 0 0 0 0 0 0
----------- -------- ------- -------------- ------- -------------- -----------------
Indicated 2,270 3.5 255 8 552 270
----------- -------- ------- -------------- ------- -------------- -----------------
Inferred 1,360 3 133 9 417 140
TOTAL 3,630 3.3 388 8.3 969 410
----------- -------- ------- -------------- ------- -------------- -----------------
These resource estimates have been prepared in compliance with
JORC requirements and reviewed by a "Competent Person." Estimates
have been prepared based on a (i) gold price of US$1,150 per ounce,
and (ii) silver price of US$25 per ounce. The Company owns 95% of
the Toka Tindung mine (and therefore 95% of the Toka Tindung and
Kopra deposits)
In the near term, the Company expects to finalise additional
drilling and assay analysis for Toka Tindung, Kopra and
neighbouring deposits; potentially leading to further increases in
resource estimates. The resource increases also provides foundation
for a further review of Archipelago's reserves; with an update to
be issued in Q1 2012.
Competent Person Statement
The Information in this report that related to mineral
exploration results, together with any related assessments and
interpretations, have been verified by and approved for release by
Mr. Graeme Fleming B App Sc (Geol), MAusIMM, a qualified geologist
and full-time consultant for PT. Tambang Tondano Nusajaya, a
subsidiary of Archipelago Resources PLC. Mr. Fleming has sufficient
experience which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
edition of the " Australasian Code For Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr. Fleming consents
to the inclusion of the information contained in this report in the
form and context in which it appears.
Further information:
Matthew Salthouse Shaun Whyte
VP Investor Relations & Corporate Ambrian Partners Ltd
Affairs Tel : +44 20 7634 4700
Archipelago Resources Plc
Tel : +65 6535 3419
----------------------------------- ----------------------------------
Bobby Morse / James Strong Gerry Beaney/David Hignell
Buchanan Grant Thornton Corporate Finance
Tel : +44 20 7466 5000 Tel : +44 20 7383 5100
----------------------------------- ----------------------------------
About Archipelago
Archipelago is a mining company listed on the AIM market of the
London Stock Exchange. The Company's principal activities are gold
mining and exploration in Indonesia (as the 95% owner of the
producing Toka Tindung Gold Mine in North Sulawesi, Indonesia). The
Company is also advancing exploration projects in Vietnam and the
Philippines.
Glossary of Terms
Ag Silver
Au Gold
g/t grams per tonne
JORC the 2004 Australasian Code for Reporting of Exploration
Results, Mineral Resources & Ore Reserves
k thousand
M million
oz Troy ounces
t tonnes
US$ United States Dollars
% Percentage
The following terms have the meaning given to them by JORC:
Competent Person, Indicated, Inferred, Measured, Resource, and
Reserve.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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